The APAC private capital outlook, released by PitchBook, offers a comprehensive analysis of the private capital landscape across the Asia-Pacific (APAC) region, updating forecasts made earlier in the year.
Spanning venture capital (VC), private equity (PE), and other asset classes, the report highlights a region navigating economic uncertainties, geopolitical shifts, and evolving market dynamics with cautious optimism.
Drawing on PitchBook’s proprietary datasets, the update provides critical insights into dealmaking, exits, fundraising, and emerging trends shaping the APAC private capital markets through the second half of 2025.
The report underscores the resilience of APAC’s private capital markets despite global headwinds, including trade policy shifts and macroeconomic volatility.
In the first half of 2025, deal activity showed mixed results.
Venture capital deal values in Q1 surged by 19% compared to Q4 2024, driven by significant investments in artificial intelligence (AI) and technology sectors, particularly in markets like China and India.
However, Q2 saw a slowdown as investors paused to assess proposed tariffs and policy changes, reflecting a cautious approach to new commitments.
Private equity, meanwhile, maintained robust exit activity, with Q1 2025 recording $302 billion in exit values globally, an 80% increase from Q1 2024, though APAC-specific exits faced delays due to market uncertainty.
Fundraising trends in the APAC region reveal both challenges and opportunities.
PE fundraising remained strong, with buyout funds continuing to attract significant capital, though growth funds are gaining traction as an alternative to VC.
The report notes that distressed debt strategies in APAC, particularly in markets like South Korea and Japan, saw substantial commitments, with $21.4 billion raised in Q1 2025 alone, propelled by large funds like Oaktree Capital Management’s $16 billion raise.
However, VC fundraising slowed, constrained by lower liquidity and prolonged holding periods, as limited partners (LPs) prioritized existing portfolio support over new investments.
Exit strategies in APAC are evolving under pressure from prolonged holding periods and a challenging IPO market.
The report highlights a shift toward mergers and acquisitions (M&A) as a primary exit route, with IPO windows remaining narrow due to regulatory scrutiny and market volatility.
Approximately 40% of APAC unicorns, representing over $1 trillion in value, have been held for nine years or longer, creating urgency for general partners (GPs) to deliver returns.
PitchBook predicts a moderate uptick in exit activity in H2 2025, particularly in tech-heavy markets like China and Southeast Asia, as improving macroeconomic conditions could bolster valuations.
The report also emphasizes sector-specific trends driving investment in APAC. Technology and AI remain focal points, with digitalization opportunities abundant in traditional sectors like manufacturing and healthcare.
In Southeast Asia, energy resilience and sustainability-focused investments are gaining momentum, aligning with regional priorities for green technology. India’s fragmented company landscape offers consolidation potential, while Japan’s mature PE ecosystem continues to attract value-oriented deals.
These trends underscore APAC’s diverse investment opportunities, even amidst uncertainty.
Geopolitical and trade policy shifts, particularly U.S.-led tariffs, pose challenges but also open avenues for opportunistic investments.
PitchBook analysts note that volatility often creates attractive pricing for high-quality assets, and agile managers in APAC are positioned to capitalize.
The report cites Europe’s historical resilience as a parallel, suggesting that APAC’s experienced PE managers can navigate turbulence by focusing on sectors like defense, energy, and food security, which are expected to see sustained growth over the next decade.
Looking ahead, PitchBook remains cautiously optimistic about APAC’s private capital markets.
While structural challenges like capital scarcity and tariff-related delays persist, a robust unicorn inventory and improving exit opportunities signal potential recovery.