Asia Pacific Private Equity Barometer 2026

Private equity activity in Asia Pacific is regaining momentum, with early signs of recovering investor confidence emerging in the first half of 2025. While recent years reflected the impact of global trade shifts and macroeconomic uncertainty, the outlook is brightening as investor confidence strengthens, and deal momentum begins to accelerate. The 2026 Asia Pacific Private Equity Barometer showcases how the region’s market is evolving, where investor confidence is returning, and how firms are unlocking value in a changing environment. We explore key trends in deal flows, valuations, exits, and value creation to help investors navigate the next 12–24 months.

The private equity market across the Asia Pacific region is demonstrating resilience amid global uncertainty. As a result, tax and regulatory clarity becomes pivotal for sustaining cross-border investment momentum across the region.

Darren Bowdern

Head of Asset Management Tax, ASPAC / Head of Alternative Investments, Hong Kong SAR

KPMG China

Private equity managers across the Asia Pacific region are adapting to macroeconomic headwinds by focusing on sector specialisation and digital transformation, driving the next phase of value creation and operational improvement.

Louis Ng

Co-Head of Private Equity

KPMG China

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Asia Pacific Private Equity Barometer 2026

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Investment activity and deal momentum

Deal volume rose 4 percent in H1 2025 (2,221 deals), marking the first increase since 2021.
Investment value declined to US$64.3 billion, reflecting a reset in pricing and more disciplined valuations.
Fundraising reached US$233 billion in 2024 — the highest in five years — and reached US$95 billion in the H1 2025, signalling strong investor confidence.
Mid-market deals continue to lead activity, while mega-deals remain selective.
India and Southeast Asia are gaining momentum while China faced headwinds and mixed conditions across other markets.
Technology, Media and Telecommunications (TMT) is the most active sector, followed by Healthcare.

Pricing and Valuations

Valuations normalised after a brief spike at the end of 2024, with average deal size moving from nearly US$72 million in the second half of 2024 to US$50 million in H1 2025.
Smaller, more strategic transactions remained firmly in focus, with mid-market deals accounting for 45 percent of regional values in H1 2025 (versus 32 percent in H2 2024).
China and India continued to offer strong mid-market opportunities, while Japan generated fewer transactions but at materially higher values.
In the mega-deal segment, Japan led with 15 transactions totalling US$24 billion, alongside continued activity in Australia and China.

Value creation through technology and ESG

Technology and AI remain central to private equity strategies, contributing 31 percent of deal value (approx. US$46 billion) and 47 percent of deal volume (2,015 transactions) since H2 2024.
Firms are increasingly embedding AI across operations, customer engagement and risk management to improve efficiency and resilience.
Regional AI adoption is accelerating, with China, Japan, Australia and Southeast Asia emerging as key hubs.
Sustainability and decarbonisation are rising priorities, helping companies meet ESG standards and positioning them for long-term growth and exit value.

Regional highlights

China: Activity cooled due to trade and regulatory headwinds but still accounted for 32 percent of deals and 27 percent of regional value.
India: Strong momentum continued with 457 deals worth US$13.7 billion in H1 2025 (21 percent of regional activity), supported by stable regulatory environment, strong demographics and expanding tech and infrastructure opportunities.
Japan: Stable and growing, with 695 deals worth US$14 billion and increasing use of PE by corporates for restructuring and succession.
Southeast Asia and Singapore: Activity slowed to US$3.6 billion in H1 2025 as US‑China trade tensions pushed companies to shift production into Vietnam, Indonesia and Thailand, but Singapore remained the key hub accounting for 50 percent of the deals.
Australia: Deal value normalised to US$5 billion in H1 2025 after the AirTrunk-led spike with activity shifting toward steady mid‑market opportunities in healthcare, industrials and financial services.
South Korea: Deal value steady at US$8.6 billion in H1 2025. Momentum expected to build around technology, carveouts and non‑core asset sales amid a favourable FX environment and resilient innovation driven economy.

Exit environment

Exits in H1 2025 cooled relative to H2 2024: volumes fell to 252 deals (from 301) and values to US$33.4 billion (from US$47.9 billion), though underlying appetite for quality assets persists.
Trade sales remain the dominant route (57 percent of exits, 59 percent of values), with Japan driving much of the momentum and consolidation lending support in China, India and Australia.
Secondary exits are a growing strategy, accounting for 25 percent of deals and 30 percent of values in H1 2025 – popular in Japan, South Korea, India and Australia.
Continuation funds gain traction as GPs unlock partial liquidity while retaining exposure to high-quality assets – particularly in Australia, India and Southeast Asia.
IPOs represent a small share (6 percent of exit values) with dual‐track processes gaining usage to enhance valuation leverage.

The ASPAC PE market is recalibrating and not retreating. With deal volumes stabilising, valuations normalising and exit pathways diversifying, the region continues to offer a durable platform for long-term value creation despite uneven near-term conditions.

To explore the full findings and discuss how these trends may influence investment strategies in the Asia Pacific region, get in touch with our Private Equity leaders across the Asia Pacific region.