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Laxman Pai, Opalesque Asia: According to a study, the Asia-Pacific (APAC) region saw $37.5 billion in announced private equity investment during Q1'25 - a relatively strong start to the year despite a modest deal count of just 226 transactions.
Japan led the region, accounting for the largest share of capital with $20 billion invested, underscoring sustained investor confidence in its stable, domestic-focused economy and ongoing wave of corporate restructuring and transformation, said the report by Q1'25 Pulse of Private Equity.
However, China experienced a quiet quarter, with only $4 billion invested across 36 deals, as persistent regulatory uncertainty and sluggish economic performance continued to weigh on sentiment. Australia also underperformed, attracting just $5.3 billion across 69 deals, significantly below its 2024 pace.
Meanwhile, exit activity in the APAC region had a notably slow start to 2025, continuing the downward trend seen in recent years. Achieving high-quality exits has remained a persistent challenge for PE funds in the region - and globally - for more than two years.
Over recent quarters, many APAC-focused funds have come under increasing pressure from LPs to return capital, particularly those nearing the end of their fund lifecycle.
In response, a growing number of PE firms have turned to continuation vehicles - structures that allow them to transfer portfolio companies from maturing funds into new vehicles. These vehicles offer a way...................... To view our full article Click here
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