Preqin, the private markets data provider, says institutional investors' average allocations to private markets have trended up since 2021, but weaker distributions from realised investments are slowing new commitments and making investors more selective. For Asia-Pacific (APAC) allocators, that fits a fundraising market that Bain and Preqin both describe as at or near a multi-year low.

TL;DR

  • Preqin's Institutional Allocation Study 2026 (13 September 2026) reports rising private markets allocations, constrained capital recycling and increasingly differentiated investor intentions by asset class.
  • - Bain's Asia-Pacific Private Equity Report 2026 put regional fundraising at $58 billion in 2025, a 12-year low, down 37% from 2024.
  • - Both signals point to a tougher fundraising market where distributions, not appetite, are the bottleneck. Preqin's full figures are subscriber-only and were not reviewed.

What does Preqin's Institutional Allocation Study 2026 say?

The study, published on 13 September 2026, has three headline findings. First, average institutional allocations to private markets have trended upward since 2021. Second, weaker distributions from realised investments limit available capital, so the cycle of capital coming back and being redeployed is slower. Third, investor intentions are becoming more differentiated across asset classes. Preqin's summary frames the shift as a move toward a 50/30/20 portfolio model rather than the traditional 60/40. The detailed allocation percentages sit behind Preqin's subscriber wall.

What do APAC fundraising numbers show?

Bain's Asia-Pacific Private Equity Report 2026, published on 24 March 2026, found fundraising fell to $58 billion in 2025, down 37% from 2024, and that APAC's share of global fundraising slipped to 5%. Dry powder, meaning committed but uninvested capital, fell to $240 billion from a $315 billion peak. Preqin's separate APAC Private Markets in 2026 report, published on 21 June 2026, says APAC private capital fundraising fell to a decade low in 2025, with an uptick emerging as investors redirect capital to Asia-regional funds.

Are distributions recovering in Asia?

There are early signs. Bain reported that exit value rose 24% in 2025, IPO exit value rose more than 70%, and net cash flows to limited partners (LPs) turned positive for the first time since 2021. Bain also said companies held for over five years rose 18% and that one-third of 2020 to 2022 vintage investments were underperforming. Recovery in distributions is therefore real but uneven.

Which APAC markets stand out?

Bain named Japan as the only market with growth in both deal value and deal count, and the largest fundraising share at $15 billion. Preqin also singles out Japan as a leader in deal activity and exits. Greater China regained the top exit market position, according to Bain, while India's deal value softened on elevated valuations.

Why it matters for Asian allocators

For family offices, sovereign funds and wealth managers in the region, the practical read-across is about liquidity planning: commitments are constrained by when cash returns, not just by interest in the asset class. Fund managers face LPs that are more selective, which raises the bar on track record and exit visibility. For related reading, see our coverage of a Preqin survey on infrastructure demand and private credit sentiment: https://altassetasia.com/preqin-survey-infrastructure-demand-rises-as-private-credit-sentiment-softens/ and CAIA's warning on evergreen funds: https://altassetasia.com/evergreen-funds-hit-534-billion-caia-warns-the-fine-print-doesnt-match-the-pitch/ This is information, not investment advice.

What is not confirmed?

Preqin's public page does not give APAC-specific allocation percentages, so this article does not claim regional allocation levels. Bain's figures cover 2025 private equity and predate the Preqin study, and the two reports use different methods, so the numbers should not be compared directly. Whether the 2026 fundraising uptick Preqin describes will persist is not established.

Frequently Asked Questions

What is Preqin's Institutional Allocation Study 2026?

It is a Preqin research report published on 13 September 2026 on how institutional investors are allocating to private markets. It is available to subscribers.

Why are distributions important for private markets allocations?

When investments are sold or return capital more slowly, investors have less cash to commit to new funds. Preqin says weaker distributions are limiting available capital and making investors more selective.

How far has APAC private equity fundraising fallen?

Bain reports $58 billion raised in 2025, a 12-year low and 37% below 2024.

Sources and Method

Sources: Preqin, Institutional Allocation Study 2026, 13 September 2026: https://www.preqin.com/insights/research/reports/institutional-allocation-study-2026 Preqin, APAC Private Markets in 2026, 21 June 2026: https://www.preqin.com/insights/research/reports/apac-private-markets-in-2026 Bain and Company, Asia-Pacific Private Equity Report 2026, 24 March 2026 (authors Sebastien Lamy, Ben MacTiernan, Elsa Sit): https://www.bain.com/insights/asia-pacific-private-equity-report-2026/ Method: figures taken from the public summary pages of these reports; subscriber-only detail was not accessed. Not financial advice.