This edition looks at investor sentiment and market shifts in Asia-Pacific private equity, particularly the rise of domestic LPs in shaping the PE landscape and local industries.
Asian capital to shape region’s growth amid broader recalibration
The Asia-Pacific private equity market is entering a renewal phase as investors reaffirm their commitment even as allocations become more selective. It could mark the beginning of a more sophisticated and resilient PE ecosystem, and perhaps benefit emerging managers, as LPs seek a more diverse exposure.
According to Rede Partners’s Asia-Pacific Market Intelligence Report, nearly 67% LPs plan to maintain allocations and 21% intend to deploy more equity in the region over the next year. Just under 30% expect to invest only in existing commitments, putting those GPs in a strong position to benefit. The PE fundraising advisory’s inaugural report is based on views from 70 institutional investors worldwide.
The report also reveals that around 70% of LPs expect at least 10% of their upcoming commitments to go to new managers, suggesting a quiet shift.
US-based investment manager Federated Hermes told DealStreetAsia early this year that the firm will not shy away from co-investments with emerging managers in Asia if the opportunity arises. This is because partnering with both incumbents and emerging GPs creates a large co-investment deal flow for LPs to improve their conversion rate.
Strategy preferences are evolving too. Growth and venture capital, long the drivers of allocations in the region, are giving way to buyouts, signalling a maturing market where investors demand operational influence and tangible value creation.
However, the Rede report notes that buyout enthusiasm has not translated into the mid-market momentum seen in North America or Europe. Rather, capital continues to gravitate to either large-cap or small-cap funds.
But the mid-market’s time may be coming. Across individual countries, there are early signs of success among lower- and mid-market managers who combine local sourcing strength with disciplined execution. For investors seeking inefficiencies and higher potential returns, this could be the next frontier.
At present, most GPs in the region are still generalists, with only a handful having developed true sector specialisation. But that could change as the market deepens and matures.
Still, there remain challenges affecting investor sentiment: Exits in the region fell for the fourth consecutive year, and fundraising and deployments have yet to recover from a sharp drop in 2023.
However, local capital and private wealth are stepping up and capitalising on the region’s tailwinds—growing middle-class demand and technological adoption. Indeed, while a significant proportion of capital into APAC has traditionally come from the West, Asia’s own capital is beginning to play a larger role, and fund managers here are raising from investors within the region.
Indian LPs finally waking up to India’s healthcare revolution
For years, foreign allocators have invested in PE firms betting big on India’s booming healthcare sector. But domestic LPs—from institutional investors to family offices—are now waking up to the transformative potential of healthcare, chasing growth in hospitals, diagnostics, and wellness platforms.
Long seen as conservative allocators, domestic investors are now moving beyond traditional real estate and public markets to back sectors that marry strong financial returns with measurable social impact. And, healthcare, with its demographic tailwinds and expanding commercial viability, is increasingly emerging as the clear beneficiary.
Take Singapore-based Quadria Capital, for instance. The PE firm, which has always considered India its focal market, plans to deploy over two-thirds of its new $1.07-billion healthcare fund in the country.
“The demographics are working in India’s favour, and healthcare is finally coming of age, with attractive business models, rising commercial viability, and growing investor interest,” Sunil Thakur, Partner at Quadria Capital, told DealStreetAsia in an interview earlier this week.
But, what’s interesting this time is who’s investing. For the first time, Quadria has roped in Indian LPs, signalling that domestic capital is gaining confidence in healthcare as a long-term growth story. The fund’s investor base still includes global institutions from Europe and the US, among others, but the participation of Indian LPs marks a critical shift in mindset.
Somerset Indus Capital Partners, another healthcare-focused investor nearing the close of its third fund, has also seen robust participation from domestic LPs, including the National Investment and Infrastructure Fund (NIIF) and the Self Reliant India Fund (SRIF), marking the first significant involvement of domestic capital since its inception in 2011.
The logic is simple: India’s healthcare sector is no longer a niche play. Rising incomes, increasing health awareness, and expanding insurance coverage are driving sustainable demand. Meanwhile, the sector’s resilience during economic downturns has underscored its defensive strength.
The growing participation of Indian LPs in healthcare funds signals more than just diversification—it reflects a maturing investment ecosystem. As domestic wealth deepens, capital is beginning to align with national priorities, supporting sectors that not only deliver returns but also promote public well-being.
If this momentum continues, India’s healthcare revolution may no longer be powered solely by foreign capital. It will be driven, increasingly, by domestic investors who see in healthcare not just a business opportunity but one for nation-building.
Top PE developments
Singapore sovereign wealth fund GIC has sued Chinese EV maker Nio alleging securities fraud. The lawsuit was filed in the southern district of New York in the US. Shares in Nio trade on the New York Stock Exchange, as well as in Hong Kong and Singapore.
Stockholm-headquartered investment manager EQT expects to notch 30 exits across its funds and geographies by the end of 2025.
In its earnings report for the three months to September 30, 2025, EQT said total gross fund exits amounted to 2 billion euros. That brought total gross exits at the firm over the last 12 months to 19 billion euros. An additional 6 billion euros of proceeds were generated on behalf of clients from realisations of co-investments.
EQT said it invested some 5 billion euros—close to double the deployment in the previous quarter. For the 12 months to September, about 40% of its capital was invested in Europe and 20% in Asia. Total assets under management grew to 267 billion euros.
Meanwhile, fundraising for BPEA Private Equity Fund IX is nearly done, with closed and pending commitments exceeding $12.5 billion. The fund is expected to reach its $14.5-billion hard cap upon final close in early 2026.
Deals in APAC
Private equity firms Carlyle and Boyu Capital have emerged as the leading contenders to acquire a majority stake in Starbucks’s China, with the full business likely to be valued at about $4 billion, Financial Times reported. Five buyout groups are said to have submitted binding offers last week, as the iconic US coffee chain seeks a local partner to navigate an increasingly competitive market.
In India, quick commerce firm Zepto closed a $450-million financing round led by new investor US-based pension fund California Public Employees’ Retirement System (CalPERS). The round, a mix of primary and secondary transactions, valued the company at $7 billion. Separately, wealth-tech startup Dezerv secured Rs 350 crore (approximately $40 million) in Series C funding comprised entirely of primary capital, with Premji Invest, the PE arm of billionaire Azim Premji’s family office, co-leading the round alongside Accel’s Global Growth Fund with participation from others.
In other significant developments, Dutch technology investor Prosus said it is acquiring a 10% stake in online travel booking platform Ixigo’s parent company, Le Travenues Technology, for $146 million (Rs 1,296 crore).
Separately, Norwegian state-owned fund Norfund pumped $20 million into SAEL Industries, a renewable energy company in the country.
In terms of M&A activity, Dr. Agarwal’s Eye Hospitals in India, backed by PE firms TPG Growth and Temasek, is understood to have initiated talks to acquire SRG Eye Hospital.
Education-focused PE firm Kaizenvest is partnering a GCC-based firm to expand its portfolio of education assets across Asia and the Gulf region. The joint venture aims to deploy $1 billion in equity and debt.
Fundraising
Malaysian pension fund KWAP has launched a 2-billion-ringgit climate fund. It joins KWAP’s two other initiatives, Dana Pemacu and Dana Perinitis, that are aimed at driving growth in the country’s private capital industry and broader economy.
Singapore-based multi-family office First Capital is looking at two private credit funds in Asia and the US, and sees significant potential in the strategy even amid growing concerns and recent blow-ups in the sector.
EAAA Alternatives has secured a $60-million commitment from the European Investment Bank (EIB) for its India Energy Transition Fund, which is targeting a total corpus of about $300 million by the end of the year.
Advantage Partners is raising its eighth Japan buyout fund, reportedly targeting 260 billion yen ($1.65 billion). The predecessor fund closed in April 2023 with 130 billion yen in commitments, and has been deployed into six companies. The firm is also raising its second pan-Asia fund, which in August invested in a Singapore-based company that distributes scientific and medical equipment across Southeast Asia.
People moves
Apollo Global Management has appointed a new Partner and Head of Asia Pacific. Eiji Ueda, who joins the firm after serving as chief investment officer of Japan’s Government Pension Investment Fund.
Singapore-based investors PrimeMovers Equity has appointed a new managing director. Kevin Vince Fernando joins the PE firm with more than 25 years of global experience, including building and managing companies, PrimeMovers said in a statement.
There have reportedly been two departures from Ares Management’s Hong Kong office.
Bosco Lee, managing director and head of product management Asia at Ares Wealth Management; and Eric Vimont, partner and head of strategy for Asia, are understood to have left the firm in recent weeks, according to PEI. Their reported departures come as Ares has been expanding its Asia business in recent years, particularly through acquisitions.
What to look out for
Earnings season is in full swing, and expected among next week’s quarterly reports are KKR and Blackstone on Oct 23.
This edition is anchored by Kavitha Nair and Paramita Chatterjee.
