We are now firmly in the AI age, where the halo effect of DeepSeek and OpenAI is reshaping fundraising strategies and redefining what it means to achieve alpha in Asian private markets.
As China’s venture capital and private equity ecosystem navigates economic headwinds and geopolitical uncertainty, a series of AI-focused funds are injecting fresh energy into the market, as my colleague Eudora Wang reported from Hong Kong this week.
Chinese GPs are now pivoting toward AI much as they once embraced the mobile internet, seeing it as essential to attract LPs from Europe, the Middle East, and Southeast Asia. Fund managers like Source Code Capital, Alibaba Entrepreneurs Fund, Zhipu AI, and Empyrean Venture, for instance, have raised dedicated AI funds to capitalise on global investor enthusiasm.
This week, Beijing-based V Fund reached the first closing of its fifth RMB-denominated fund to focus on early- to growth-stage startups in areas including AI, humanoid robots, and smart manufacturing.
Managers across the region are looking to AI as the next frontier for value creation. A recent State Street report underscores this trend, revealing that 12% of APAC institutions are already deploying AI and large language models—a higher adoption rate than the global average.
We are also busy consolidating the speaker collective and agenda for the Asia PE-VC summit 2025. Be sure to register for sharp insights. We are also excited to announce the seventh edition of DealStreetAsia’s Indonesia PE-VC Summit that returns to Jakarta on 29 January 2026.
LP-GP updates
Pressured by economic headwinds and geopolitical tensions, western investors have been hesitant to back Chinese fund managers. Only three China-focused PE funds, including all currencies, have been raised so far this year, totalling a mere $140 million, Preqin data show.
Consequently, buyout firms that have traditionally relied on US-based investors for their Asia-focused funds are increasingly turning to domestic capital for China deals.
Once such is PAG. The Hong Kong investor this week raised 3.1 billion yuan ($432 million) in the first close of its inaugural yuan-denominated buyout fund, exceeding its target.
In another prominent deal in China this week, Switzerland’s LGT Capital Partners co-led IDG Capital’s $500-million multi-assets continuation vehicle (CV), which comprises a diversified portfolio of 13 assets from onshore and offshore selling vehicles.
In an interview with DealStreetAsia, Brooke Zhou, Partner & Co-Head of Private Equity, Asia Pacific at LGT Capital said there are “contrarian opportunities” in the Chinese market, especially on the secondaries side. However, Zhou added that for now, there are only a few GPs in China who are fundraising with an explicit target and a concrete timetable towards a fund close. “In this market environment, it is difficult unless you have something special, a loyal LP base, and a great track record. Even then, there is no guarantee [that your fundraising target can be achieved],” she said.
Moving to Southeast Asia, Jelawang Capital, the fund-of-funds subsidiary of Malaysian sovereign wealth fund Khazanah, has committed capital to its first five general partners (GPs).
SSI Asset Management has paused investments from the Vietnam Digitalisation and Healthcare Fund, its joint vehicle with South Korea’s SK Group. The Korean chaebol was the anchor limited partner (LP) in the fund, which was launched in 2023 with a target to raise up to $100 million. As of the last update, the fund had raised around $40 million.
Our India bureau interviewed Sandeep Murthy, MD of Lightbox Ventures, which has backed the likes of cloud kitchen operator Rebel Foods and furniture rental platform Furlenco, this week. The firm expects its fourth fund to be around $250 million, its largest yet, nearly six years after closing its previous fund.
Meanwhile, early-stage investor Blume Ventures is in the market to raise $300 million for its latest venture capital fund, with the IFC likely to come in as an LP.
Mid-market private equity (PE) firm Amicus Capital Partners has announced the final close of its second buyout fund at $214 million, exceeding its target of $200 million.
Of scoops, startup fundraising and a wedding
Jeff Bezos said “I do” to Lauren Sanchez in a lavish, star-studded wedding ceremony in Venice this week. Meanwhile, the company he founded, Amazon, could be courting a new partner in Southeast Asia. The US tech giant is said to be in advanced talks to lead a $40 million funding round in Jakarta-based quick commerce startup Astro. If finalised, this would mark Amazon’s first direct venture investment in the country’s consumer sector.
Meanwhile, Novo Holdings is considering an investment in the Singapore-based private specialist group Foundation Healthcare Holdings. The deal could value the company at approximately S$1 billion ($780 million) and pave the way for the eventual exit of Temasek-subsidiary SeaTown.
Vietnamese education technology company Galaxy Education (GE) confirmed that it has secured nearly $10 million in funding from East Ventures and other investors. The funding round was first reported by DealStreetAsia.
The shareholders of SOHO Global Health have advanced with their process of finding a buyer for the Jakarta-listed pharmaceutical company and are said to have appointed Deutsche Bank to advise on the sale. The sale process could provide CVC Capital Partners with an exit from its five-year-old growth equity investment.
Sukino Healthcare Solutions, which offers out-of-hospital care, neuro-rehabilitation, stroke recovery, and home healthcare services, is in talks to raise fresh capital as it seeks to expand its footprint in India’s fast-growing rehabilitation sector.
India’s Bharat Value Fund (BVF), managed by Pantomath Capital Management, is looking to invest in Amnex Infotechnologies, a company that builds indigenous technology solutions in IoT, automation, mobility, GIS and data science sectors.
Chinese embodied AI startup Galbot has secured 1.1 billion yuan ($153 million) in a fresh funding round co-led by Chinese battery giant CATL and its strategic investment arm Puquan Capital.
From private markets to public listings
The Indonesia Stock Exchange (IDX) has hosted fewer initial public offerings (IPOs) this year compared to 2024—but the listings are raising significantly more capital. Thanks to a string of large initial share sales—from conglomerates, state-owned enterprises (SOEs), and regionally-owned businesses—IPO fundraising on the IDX in 2025 looks poised to surpass the 14.3 trillion rupiah raised in the entire 2024. Acting as a key catalyst is the newly established sovereign wealth fund Danantara, which is expected to become a strategic equity provider in several upcoming offerings.
Danantara has also agreed to provide a $405-million shareholder loan to state carrier Garuda Indonesia, as part of a broader $1-billion funding commitment. The loan marks a significant step in the transformation of Indonesia’s national airline, following its 2022 restructuring.
Insurer FWD Group, backed by billionaire Richard Li, is looking to raise HK$3.47 billion ($442.08 million) through a Hong Kong initial public offering. Abu Dhabi’s sovereign wealth fund Mubadala has subscribed to buy $150 million worth of FWD shares in the IPO and a subsidiary of Japanese life insurer T&D Holdings will buy $100 million of stock.
Credila Financial Services has filed for an IPO worth Rs 5,000 crore ($583.76 million). Existing shareholders HDFC Bank and Kopvoorn BV will sell shares worth Rs 2,000 crore. Proceeds from the offering will be used to boost the firm’s capital base.
Walmart Inc.’s PhonePe, India’s largest provider of digital payments, is preparing to file preliminary documents for an initial public offering that may raise as much as $1.5 billion, Bloomberg reported.
Meanwhile, PhonePe’s rival Pine Labs’ IPO could be worth about $1 billion and the company is seeking a valuation of up to $6 billion.
Interviews
We spoke to Felix Frenzel and Rei Murakami, founding partners at Kadan Capital this week. Singapore-headquartered Kadan Capital, which is backed by a single Japanese family office as its LP, is targeting 25 investments over the next 2-3 years, with typical cheque sizes between $500,000 and $1.5 million.
Senior executives at Indonesia’s two sovereign wealth funds on Wednesday said they will expand investment in clean energy transition projects this year, citing plans ranging from electric vehicle supply chains to power grid upgrades. Ridha Wirakusumah, CEO of the Indonesia Investment Authority, or INA, said renewable energy projects currently make up 12% of its $4 billion investment portfolio. Pandu Sjahrir, Danantara’s chief investment officer, said the fund also hopes to invest in the development of and upgrades to Indonesia’s power grid.
A long read
A growing crisis of loan defaults is rattling Indonesia’s P2P lending industry, eroding lender confidence and spotlighting serious structural gaps in the system. While Investree has officially entered liquidation, platforms such as Akseleran, KoinWorks, and CROWDE are still locked in unresolved defaults, with no visible timeline for resolution.
“The business model of online lending needs to be improved, from credit scoring processes to supervision mechanisms. Many borrowers are not properly screened; some even have poor credit histories with banks, but are still able to borrow through online platforms. There’s also the growing issue of young and inexperienced borrowers,” said an expert.
As investors bet on AI to future-proof portfolios and drive alpha, global markets remain on edge amid rising tensions in the Middle East, reminding us how quickly the macro landscape can shift. Fund managers are navigating a complex mix of technological optimism and geopolitical uncertainty. We’ll continue to follow these crosscurrents. Stay tuned.
