Preqin data shows Asia-Pacific private capital fundraising fell to a decade-low $94.3 billion in 2025, but early 2026 figures show investors pivoting back toward Asia-regional funds, with Japan named the region's standout market.

TL;DR

  • APAC private capital fundraising fell for a fourth straight year in 2025, to a decade-low $94.3 billion, per Preqin's APAC Private Markets in 2026 report.
  • Asia-regional funds captured over 70% of APAC's capital raised in Q1 2026, up sharply from a 17% share in 2025.
  • Japan generated close to 30% of APAC's 2025 private equity deal and exit volume; nearly half of APAC investors now rank it their top opportunity market, ahead of Western Europe.

How much did APAC private capital fundraising fall in 2025?

Private capital fundraising targeting Asia-Pacific declined for a fourth consecutive year in 2025, reaching $94.3 billion, per Preqin's APAC Private Markets in 2026 report, published 21 June 2026. Preqin, the alternative-assets data provider acquired by BlackRock in 2025, links the slide to persistent trade and regulatory tensions. The shortfall is notable given APAC's economic weight: the region accounts for roughly 40% of global GDP, yet remains underrepresented in private capital fundraising and assets under management.

Are investors returning to Asia-regional funds in 2026?

Fundraising began 2026 on a weaker note, but Preqin's data points to an early reorientation. Asia-regional funds, vehicles investing specifically within the region rather than through a global mandate's Asia sleeve, captured more than 70% of total private capital raised in APAC in the first quarter of 2026, up from just 17% in 2025.

Why is Japan the standout market in APAC private equity?

Japan accounted for close to 30% of APAC's total private equity deal and exit volume in 2025, Preqin's Gerard Minjoot, who covers deals for the firm's Private Markets Research team, said in the report, citing accommodative monetary policy, a favourable currency backdrop and improved exit-valuation alignment. Nearly half of APAC-based investors now name Japan their most compelling opportunity market, ahead of Western Europe. Minjoot expects momentum to continue into 2026, though higher policy rates could push more activity toward take-private and PIPE deals.

How does Greater China's private equity market compare?

Greater China's market is largely domestically driven, with local capital filling gaps left by cautious foreign investors, Preqin found. Deal activity rebounded in 2025 and is expected to stay relatively strong in 2026, driven by continued semiconductor and AI investment tied to domestic technological self-sufficiency goals.

What is happening in AI venture capital and real estate?

APAC's AI venture capital market is growing along a more fragmented path than Western markets: AI-related deals made up just over a third of regional VC deal volume and a quarter of VC deal value in 2025, with aggregate investment holding near $20 billion a year and capital concentrated in Japan and South Korea. In real estate, APAC investors are favouring lower-risk core and value-added strategies over opportunistic funds, with corporate disposals and REIT privatisations totalling at least $5.6 billion in the second half of 2025.

Why this matters for APAC investors

The reorientation toward Asia-focused strategies is already visible in individual deals. Partners Group's recently reported $1 billion evergreen private credit mandate from a single Asia institutional investor, covered separately by Alt Asset Asia, shows large-ticket capital committing directly to regional strategies rather than global pools with Asia exposure. It sits alongside a broader pivot in the region's roughly $150 billion private credit market toward AI infrastructure and direct family office deals, and echoes liquidity questions raised in our coverage of two newly launched private-market funds. None of this is a recommendation to buy, sell or allocate; it summarises published data.

Frequently Asked Questions

What is Preqin's "APAC Private Markets in 2026" report?

Preqin's annual review of Asia-Pacific private capital fundraising and deal-making, published 21 June 2026.

How much did APAC private markets raise in 2025?

Preqin recorded $94.3 billion in private capital fundraising targeting APAC in 2025, a decade low and the fourth consecutive annual decline.

Why is Japan considered a bright spot in APAC private equity?

Japan generated close to 30% of APAC's 2025 private equity deal and exit volume; nearly half of APAC investors now rank it top, ahead of Western Europe.

Sources and Method

This article is based on Preqin's APAC Private Markets in 2026 report (21 June 2026) and WealthBriefing's independent report (Amanda Cheesley, 24 June 2026), which quotes Preqin's Gerard Minjoot directly. Preqin's full report is paywalled; figures here reflect its published executive summary and WealthBriefing's quotations. This is not investment advice.