In 2024, private equity investments in India and Japan saw an increase in deal value, recovery in exits, challenges in fundraising, and a decline in dry powder. According to Bain & Company’s Asia-Pacific Private Equity Report 2025, the region’s PE market showed signs of recovery with a 11% rise in deal value to $176 billion. Despite uncertain macroeconomic conditions, the region experienced moderate investments, although deal count decreased by 9% compared to the previous year.

Buyouts were popular in 2024, particularly in markets like India, Southeast Asia, and Greater China. Carve-out deals accounted for 19% of buyouts over $100 million, with 44% of Asia-Pacific general partners viewing them as a top investment opportunity. Market activity varied across the region, with India and Japan emerging as hotspots for PE investors.

While Greater China led in deal value, India showed growth in both deal value and count. Major global PE funds are shifting their focus towards India and Japan, with LPs recognizing the potential in these markets. Technology remained a dominant industry in terms of deal value and count, but investments in communications and financial services saw significant growth.

The challenging PE environment in Asia-Pacific led to a decline in active investors, with top investors capturing a large share of total deal value. Deal multiples increased due to rising valuations in public markets. Exit markets improved in most regions, with India leading in both value and count.

Raising new funds continued to be challenging for investors in 2024, marking the third year of significant obstacles in fundraising. Asia-Pacific Fundraising Hits 10-Year Low in 2024

In 2024, fundraising for Asia-Pacific-focused funds plummeted to a decade low of $74 billion, marking a decrease of over 20% compared to the previous year and a staggering 43% drop from the average of the past five years. Globally, fundraising also experienced a significant decline of 23%, excluding RMB funds, with Asia-Pacific’s share of global fundraising falling to a mere 7%, down from 13% in 2021.

Dry powder, or total unspent PE capital, in the Asia-Pacific region decreased from its peak in 2023, reflecting a challenging fundraising landscape that contributed to this decline.

Despite these challenges, signs of recovery are emerging in Asia-Pacific’s PE market. Fund managers are expressing cautious optimism for 2025, with a survey revealing increased confidence in future returns. In fact, 87% of respondents believe returns will remain stable or improve over the next three to five years, a significant increase from 61% in 2023.

According to Prabhav Addepalli, a Bain & Company PE partner based in New Delhi, Asia-Pacific fund managers are cautiously hopeful about the future, despite ongoing uncertainties in the macro environment.

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In conclusion, the Asia-Pacific fundraising landscape faced significant challenges in 2024, with a notable decline in fundraising activities. Despite this downturn, there are positive developments on the horizon, with fund managers expressing increased optimism for the future. The findings suggest a potential rebound in the Asia-Pacific PE market, highlighting opportunities for growth and resilience in the region.