Growth equity outperformed buyouts over the three years to March 2026, and offered stronger risk-adjusted returns than venture capital over five and 10 years, according to Preqin's "Strategy in Focus: Growth equity" report published on 1 October 2026. The full report is subscriber-only, so the underlying figures were not available for this article.

TL;DR

  • Preqin, the private markets data provider, says growth equity beat buyouts over three years to March 2026, and its IT share of deal-making may be shifting because of AI.
  • Growth equity fundraising is increasingly concentrated in North America-focused funds, and average fund sizes have grown steadily.
  • For Asia, the report page gives no regional data. Separate law firm data shows APAC buyout activity was muted in Q2 2026.

What did Preqin say about growth equity?

Preqin's report page lists three findings. First, growth equity outperformed buyouts over the three years to March 2026. Second, it offered better risk-adjusted returns than venture capital over five and 10 years. Third, information technology has historically made up a large share of growth fund deal-making compared with private equity overall, but Preqin's latest data suggests that dominance may be shifting, mainly because of AI trends. Growth equity means minority or control investments in fast-growing, already revenue-generating companies, sitting between venture capital and buyouts. No percentage figures are shown on the public page.

Why are buyouts the comparison point in Asia?

HSF Kramer, a law firm, reported on 21 July 2026 that Asia-Pacific buyout activity remained muted in Q2 2026, with Asia-Pacific deal value down 2.4% year on year even as global M&A reached US$2.8 trillion in the first half, citing LSEG data. Q2 fundraising commitments rose to the highest level since Q1 2024, driven by three large closings: Baring Asia Private Equity Fund IX (US$15.6bn), Blackstone Capital Partners Asia III (US$13.1bn) and Bain Capital Asia Fund VI (US$10.5bn). HSF Kramer adds that Asia's share of global fundraising remains below its 2021 to 2024 levels.

What does this mean for APAC allocators?

Family offices, sovereign funds and institutions in the region that already hold buyout exposure may ask whether growth strategies deserve a larger place in the mix. Preqin's data does not say whether Asian growth funds drove the three-year result, so allocators should ask managers for Asia-specific track records rather than assume global averages apply. HSF Kramer points to China as the strongest Asia market in Q2, led by technology and telecoms deals, and flags AI as a source of valuation concern for private capital. For related reading, see our coverage of Asia-Pacific equity fundraising reaching US$327 billion (https://altassetasia.com/asia-pacific-equity-fundraising-hits-327-billion-in-2026-as-ai-drives-deals/), the Preqin Performance Pulse for H2 2026 (https://altassetasia.com/preqin-performance-pulse-h2-2026-private-credit-returns-8-3-but-growth-slows-and-pe-liquidity-stays-tight/) and what Preqin's 2026 allocation study means for APAC investors (https://altassetasia.com/private-markets-allocations-are-rising-but-cash-is-tight-what-preqins-2026-study-means-for-apac-investors/).

What is not confirmed?

The sources do not give the size of the growth equity outperformance, the Asia-Pacific share of the sample, or fee-adjusted returns. Past performance over three years does not predict future returns. This is information, not investment advice.

Frequently Asked Questions

Did growth equity outperform buyouts, according to Preqin?

Yes, over the three years to March 2026, according to Preqin's 1 October 2026 report summary. The size of the gap is behind the subscriber paywall.

Is growth equity concentrated in North America?

Preqin says fundraising is increasingly concentrated in North America-focused funds, and average growth equity fund sizes have grown steadily.

How did Asia-Pacific buyouts perform in Q2 2026?

HSF Kramer reports Asia-Pacific buyout activity remained muted, with regional deal value down 2.4% year on year.

Sources and Method

Preqin, Strategy in Focus: Growth equity, 1 October 2026 (https://www.preqin.com/insights/research/sector-in-focus/strategy-in-focus-growth-equity); HSF Kramer, Asia private capital quarterly analysis Q2 2026, 21 July 2026 (https://www.hsfkramer.com/insights/2026-07/asia-private-capital-quarterly-analysis-quarter-2). Only publicly visible summary points were used from the Preqin report. Written by Alt Asset Asia editorial.