PitchBook’s Asia Pacific private capital outlook delivers a measured dose of optimism for 2026.
Although it shows activity moderated to US$126.5 billion up until the end of October from $177.7 billion in all of 2024, and down from a ten-year high of $229.1 billion in 2021, prognostications for next year point to recovery.
Lower interest rates should lead to cheaper deal leverage for private transactions that are already less leveraged in Asia than the West, according to the PitchBook report. Lower rates should also improve asset valuations as discount rates applied to assets decline.
Infrastructure and real estate which are especially sensitive to financing costs are expected to benefit, the report says, noting that the Asian Development Bank estimates Asia will need $1.7 trillion annually to 2030 for infrastructure needs.
Exits have been challenging through 2025, and remain a concern for the coming year, according to PitchBook. Asian exit value of $95.8 billion as of end-October was close to the $101.2 billion in all of 2024, the lowest figures since 2017.
The report notes that the availability of liquidity remains the persistent issue. Exit channels “have not opened in a sustained, meaningful way across Asia”, though there has been some resurgence in initial public offerings, especially in Hong Kong. Lower interest rates may bring brighter prospects next year.
While the regional picture is more fragmented, PitchBook points to clear strengths. India and Japan “are expected to remain the most dynamic markets, supported by deep institutional investor bases, regulatory reform, and consistent corporate activity”.
China’s private capital market, meanwhile, appears to be growing more insular, driven by local currency funds, local limited partners (LPs) and policy-influenced investing.
Southeast Asia remains relatively muted, as local general partners and LPs wait for private markets to recover. South Korea and Australia are more active but are still wating for better macro conditions to rebuild momentum.
PitchBook lists several key themes for 2026: local capital formation; alternative liquidity mechanisms, including secondary deals and private credit; and regional policy alignment and institutional reform. Together, these could produce a deeper and more robust and mature regional private markets ecosystem.
