After a tepid 2025, cautious optimism is building for private equity in 2026

[SINGAPORE] The expected rebound in the private-equity (PE) sector did not materialise in 2025, but observers say the signs are positive for 2026.

The first half of this year saw PE deal conversations delayed due to the US tariffs announced on Apr 2 or “Liberation Day”. The initial public offering (IPO) window also remained muted by historical standards, making it difficult for exits, said Sean Yoo, head of Asia-Pacific at Federated Hermes’ PE division.

“Distributions back to investors, as a per cent of industry net asset value, are at their lowest point on record, two-thirds below the levels we saw up to and during Covid,” he told The Business Times.