A stream of challenges over the past two years has created a significant amount of uncertainty in the ASPAC region, from tariffs and geopolitical tensions to the Iran war and the energy impact associated with the lengthy closure of the Strait of Hormuz. This ongoing uncertainty has hampered PE investment in the region, in tandem with specific private market challenges, including the protracted lack of exits and the resulting pile-up of aging investments keeping capital stuck in the market.
String of uncertainties continues to hamper ASPAC PE market
Fundraising activity quiet amid solid capital availability and soft dealmaking; large fund an exception
Fundraising activity in the ASPAC region remained incredibly soft, with just 16 funds raised as of the end of Q2’26, well off pace to match even the more-than-decade low of 67 funds seen in 2025. Fundraising value showed far more resilience, with $15.8 billion raised as of mid-year, compared to $30.9 billion in 2025. The solid fundraising value can be significantly attributed to mega funds, including EQT’s $15.6 billion BPEA IX fund in April, which was the largest ASPAC-dedicated PE fund ever raised.1
The focus on mega funds highlights the trend of capital becoming more and more concentrated within the larger, highly-proven PE houses, with smaller funds finding it more difficult to raise funds given current market challenges.
PE investors in ASPAC increasingly focusing on the health sector
Over the last few quarters, PE investors in the ASPAC region have shown increasing interest in healthcare sector opportunities, driven in part by the growing middle-class population in many jurisdictions and the related surge in demand for health and other services (e.g. education, financial). This, combined with an aging population in more mature markets like Australia and Japan, and the perceived ability of AI to drive significant value creation in the space, is expected help drive investment growth for the long term.
Trends to watch for in Q3’26
Looking ahead to Q3’26, PE dealmaking in the ASPAC region is expected to remain slow as PE investors continue to be cautious about where and how to deploy capital and sharpen their focus on value creation and future exit routes. AI is expected to be a key value creation driver, particularly for traditional businesses that have lagged on the digital transformation front.
Given recent events and their widespread impact, governments across the ASPAC region are expected to increase their focus on improving energy security and domestic availability; this will likely foster new opportunities in the private capital space, although it could take some time for investment opportunities to materialize.
While the short-term outlook for PE investment in ASPAC is somewhat weak relative to the Americas and Europe, the long-term outlook remains very positive given rapidly maturing sub-markets and evolving market demographics.
Pulse of Private Equity Q2’26
A KPMG quarterly analysis of global private equity activity.
Explore the regional reports
1 Hedgeco.net, “EQT’s Record $15.6 Billion Asia Close Signals a New Era for Private Equity in the Region.” 27 April 2026.
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