Fundraising: KKR, Affinity in focus, Australia to lead mid-cap space

• Gap between haves and have nots remains wide in Asia private equity fundraising
• Japan on course for a quieter year in 2026, but Australia will see mid-market glut
• Opinion still divided on China as more managers prepare to return to market

Exits: Asia to edge higher, helped by China outbound M&A

• China strategics set to acquire PE-backed companies amid mixed views on IPO outlook
• Despite tariff anxiety subsiding, industry will be more aggressive in generating liquidity
• Continuation vehicles to be cemented as market fixture regardless of macro backdrop

Japan: Structural deal drivers, market stability to drive deal flow

• Take-private opportunities expand with ongoing governance reform
• Non-core divestments extend from industrials to healthcare, consumer
• GPs expect more sponsor-to-sponsor deals, as IPOs remain difficult

China: Buyouts set to rise, but mixed signals cloud exit market

• Control deals to proliferate amid stabilised macro, moderating growth, attractive valuations
• Opportunities span consumer, healthcare, industrials, with more deals of USD 300m-plus
• Monetisation channels opening, but only quality companies will navigate exits backlog

Australia: Middle market PE investment, fundraising hots up

• Regulatory uncertainty will only temporarily impede deployment in 1H26
• Fundraising to tick up as GPs specialise, LPs receive distributions globally
• Investees need international footprint to maximize value, offset macro risks

India: Domestic capital, thriving exit markets underpin scaling

• Increasing local LP participation may support GP formation
• More global, regional players will add India to Asia agendas
• Public markets to remain healthy amid structural tailwinds

Value creation: Asian GPs still scrambling to catch up on AI

• Sceptics must be swayed as AI creeps into Asia’s value creation agenda
• Most GPs in Southeast Asia have no value-add plan prior to investment
• Operational overhauls late in holding period signal buyer beware market

Deep tech: Rest of Asia poised to challenge China’s dominance

• Government initiatives mobilise public, private funding to cultivate deep tech
• Investment opportunities will centre around physical AI, related supply chains
• Success will hinge on discipline in monetisation, understanding local advantages

Private credit: Talent remains key constraint to growth in Asia

• Participation in Asia private credit to increase with mixed bag of actors
• LPs to scrutinise manager talent as fundraising outlook remains subdued
• India will be fastest growing market despite structure, pricing concerns

Private wealth: Evergreens to diversify, see performance scrutiny

• Focus stretching from core markets like Japan, Australia to elsewhere in Asia
• Products becoming more thematic, raises questions about ability to scale
• Young evergreens reaching point where they can be judged on performance