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Laxman Pai, Opalesque Asia:

Asia-Pacific private capital AUM is forecasted to reach $2.25tn in 2026, representing a 15.0% CAGR from 2021, said a study.

According to Preqin's 2022 Alternatives in APAC Report, private equity and venture capital is expected to continue to grow their share of the total private capital market. AUM is expected to reach $1.9tn in 2026, or 83.0% of the total compared to an estimated 73.6% in 2021.

"Global investors are continuing to look further afield for compelling investment opportunities and AsiaPacific (APAC) continues to offer a range of opportunities that offer diversification away from home markets. The region has so far avoided many of the more severe inflationary impacts seen in the US and Europe, given the more measured policies from the authorities in response to the pandemic," the study said.

While ongoing COVID restrictions have remained in place in some markets, investment activity has continued to hold up relatively well. Almost 12k PEVC deals were completed in 2021 with an aggregate deal value of at least $346bn, which marked a 61% increase in 2020.

Private capital funds in APAC continued to deliver attractive risk-adjusted returns. For fund vintages between 2012 and 2019, APAC private capital funds returned a median of 18.2% net internal rate of return (IRR) which is higher than Europe (15.9%) and North America (17.4%).

However, the standard deviation of returns in APAC is also higher at 26.6% compared to 15.......................

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