Geopolitical shifts, rapid growth in local wealth, and evolving investor priorities are driving a fundamental transformation in Asia’s private markets. This shift was among the several topics discussed at the Limited Partners track on Day 1 of DealStreetAsia’s Asia PE-VC Summit 2025 in Singapore on Sept. 10.
From how global LPs are assessing Asia’s potential and Japan’s PE landscape, to the rise of emerging managers, private wealth, China, and a dynamic secondary market, capital deployment is becoming more strategic and sophisticated.
Across the six panel discussions, one theme stood out: success hinges on strong relationships, trust, and disciplined, well-aligned investment approaches.
Here are the takeaways from the LP track of the two-day summit:
Capital shifts
The opening panel, ‘How are global LPs assessing Asia’s potential?’ highlighted shifting capital allocation patterns as geopolitics, home bias, and AI reshape investment priorities.
While most capital still originates in the West, Asia’s fastest-growing capital pool is seeing increasing interest from local institutions, sovereign investors, and high-net-worth individuals. Many investors remain overexposed to developed markets, underscoring the need for diversification, while emerging managers gain backing through trust, strong relationships, and consistent performance.
Buyout at a crossroads
In Japan’s Private Equity Moment: Real Momentum or Cyclical Mirage?, private equity sits at a crossroads: structural tailwinds and governance reforms support growth, yet talent shortages, ageing tech sectors, and regulatory constraints pose challenges. LPs are diversifying into secondaries and co-investments, while foreign investors must lean on local partnerships and niche strategies to succeed. Exits remain complex, with trade sales dominating and IPOs and secondaries gaining cautious traction. Optimism persists, with the potential for a “golden era” of buyouts underpinned by operational expertise and leveraging technology to offset demographic decline.
Emerging strength
The Case for Emerging Fund Managers highlighted how emerging fund managers are gaining renewed focus, but success relies on fundamentals: understanding the market, identifying gaps, and building strong foundations with the right anchor sponsors. Many pursue differentiated strategies and are highly motivated to break away from larger fund mandates, aligning closely with LP interests. This highlights how private equity in Asia is increasingly people-driven, with relationships and credibility underpinning access to quality opportunities.
Resilient interest
In Can LPs Ignore China Despite Macro Headwinds?, China’s market, after a slow year, is experiencing renewed LP engagement, the so-called “DeepSeek moment,” despite macro headwinds, slowing growth, geopolitical risks, and exit challenges. More Chinese GPs are returning to fundraising, illustrating that local conditions, combined with disciplined strategy, can reignite investor interest even amid uncertainty.
Liquidity pathways
Finally, in Can Asia’s Secondaries Market Deliver on Investor Expectations? panellists discussed Asia’s secondaries market, which is emerging as a critical avenue for investors. High rates and market volatility have surfaced attractive assets that might not otherwise have come to market. As Lay Hong Lee of Flexstone Partners notes, secondaries offer both liquidity and the promise of returns, and secondary funds themselves are raising billions in the region, reflecting growing confidence and the maturation of this segment.
Wealth momentum
The panel on Private wealth is having its moment in the sun, explored Asia’s rising pool of capital reshaping fundraising. With traditional LPs tightening allocations, GPs are increasingly turning to family offices, private banks, and retail channels. Wealth creation, regulatory shifts, and the legitimisation of alternatives are driving demand, while innovations such as evergreen structures and dedicated resources give private investors access comparable to institutions. Private wealth is evolving from a niche source into a mainstream driver of capital formation in Asia’s private markets.
Together, these conversations paint a picture of an Asian private markets ecosystem in evolution: complex, opportunity-rich, and increasingly sophisticated. While challenges persist, the summit underscored that relationships, trust, and disciplined execution remain the foundation for navigating this transformative landscape successfully.
