Asia-Pacific private equity exits rebound, net distributions turn positive in 2025: Bain
General partners list robust IPO markets and strong public market performances as catalysts for the revival
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[SINGAPORE] The private equity (PE) market in the Asia-Pacific recorded bright spots in 2025 – the number of exits grew and net distributions turned positive, said Bain & Company in a new report.
Its Asia-Pacific Private Equity Report 2026 said that more than half (56 per cent) the general partners (GPs) polled identified robust initial public offering (IPO) markets and strong public market performances as key catalysts for the rebound in exits.
Exit value grew 24 per cent in 2025 to US$150 billion, from US$121 billion in the year before. Exit count was up 8 per cent.
IPOs and open market exit values jumped more than 70 per cent between 2024 and 2025 to emerge top among exit channels by value for PE in 2025.
Trade exits remained strong, growing 60 per cent between 2024 and 2025, retaining second place among exit channels.
PE exit value went up in most Asia-Pacific markets, except for those in South-east Asia, Australia and New Zealand.
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South-east Asia’s PE exit value fell to US$4 billion in 2025 from US$6 billion in 2024.
While exit activity has eased the overhang on PE and relieved some pressure on distributions to paid-in capital (DPI), it has not been enough to offset ageing and underperforming 2020-to-2022 portfolios.
The number of portfolio companies held for more than five years grew by 18 per cent in 2025; the average age of current holdings was four years at the end of that year, up from 3.7 years at the end of 2024.
Net distributions also turned positive in the Asia-Pacific, reversing from three years of outflows.
This has offered some relief to limited partners’ liquidity pressures. There is still an urgency to convert value into realised return, and fund managers still prioritise DPI as a core performance metric.
However, fundraising continues to be soft, as Asia-Pacific PE funds record a fourth consecutive year of decline. Total capital raised fell to US$58 billion, down 37 per cent in value and 44 per cent in fund count from 2024.
This was also a 12-year low for Asia-Pacific PE fundraising; the region’s share of global fundraising fell to around 5 per cent.
But there are still some positive signs: About 60 Asia-Pacific-focused funds with target sizes above US$1 billion remain in the market, representing more than 10 per cent of global fundraising targets.
Several large funds in the region have secured early commitments, with six of the largest ones disclosing about US$25 billion in secured commitments at the end of 2025.
There is still room in the region for mid-sized PE funds, defined as those with a fund size of between US$500 million and US$2 billion. These funds account for 20 to 30 per cent of the Asia-Pacific-focused funds raised in the last few years, said Elsa Sit, Bain’s vice-president of Asia-Pacific private equity.
She added: “However, GPs are clearly facing a higher bar for success. In the coming years, funds with a differentiated strategy and robust portfolio management capabilities, and which manage exits that bring attractive returns to limited partners will be rewarded.”
Artificial intelligence (AI) is increasingly central to investment themes, with GPs assessing the impact of AI on acquisition targets by considering, for example, whether AI can augment, transform or revolutionise a target’s business model.
Results have so far been mixed, but there are relatively few cases of revolution of a business model from AI.
“The advantage will go to funds that combine sector insight with execution capability,” said Ben MacTiernan, a partner in Bain’s private equity practice.
The fundamentals for PE entering 2026 remain solid, with ample dry powder, opportunities for value creation and sustained LP appetite for private market investments.
The current Iran conflict has not yet dented Asia-Pacific PE deal making so far, said Sit. Having undergone crises ranging from Covid to the US tariffs in recent years, the PE industry has become more resilient to volatility.
“However, this may evolve, depending on how the conflict develops,” she added.
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