The private equity industry in ASPAC continues to evolve and mature, and while overall investment levels have cooled, the forecast for the year ahead suggests that the PE market is ready for a new wave of activity, innovation and value creation.

Looking to 2025, the coming months are likely to see a more cautious, value-oriented approach to investing in ASPAC. Investors could continue to shift gears from short-term survival strategies to an emphasis on operational excellence, digital advancements and long-term growth.

The question now isn’t whether there are opportunities in ASPAC – there most certainly are. The question is: are PE investors ready to seize them?

Trends and analysis covered in this report include:

• PE investment activity in ASPAC has begun to stabilize, signaling the start of a return to pre-pandemic norms
• Fundraising has surged to its highest level in five years, demonstrating renewed investor confidence in the region’s long-term growth prospects
• Valuations have also started to cool, driven by a variety of macro factors including rising interest rates, inflationary pressures and shifting investor sentiment
• Exits remain unpredictable – however, the tools available to PE firms are expanding: trade sales offer certainty, continuation funds provide flexibility, secondary markets deliver liquidity, and an anticipated reopening of IPO markets gives PE firms another route to exit

The report is also available at kpmg.com