Media365
Asia-Pacific private equity managers are more upbeat on the deal outlook, expecting stronger returns and fewer geopolitical risks than their global counterparts, even as deal activity in the region continues to soften, a new survey shows.
Respondents in the region expected an average net return of 17.4 per cent from the private equity industry this year, slightly higher than the 17.1 per cent expected by North American, European, Middle Eastern and African (EMEA) executives, according to Dechert’s annual global private equity outlook report.
The law firm worked with Mergermarket to survey 100 senior-level executives at different private equity firms across regions in July.
Regarding the threat of geopolitical conflicts to deal making over the next 12 to 18 months, only 30 per cent of Asia-Pacific managers cited it as a top risk, compared with 49 per cent globally and 65 per cent in EMEA.
The findings pointed to cautious optimism in Asia-Pacific, underpinned by interest in healthcare and technology deals and the wider use of flexible structures such as earnouts.
“We expect this optimism to translate into improved deal flow in Asia-Pacific in 2026,” Maria Tan Pedersen, co-head of emerging markets at Dechert, said in a written response to the Post.
The life sciences and healthcare, and technology sectors were expected to lead activity in the region, Pedersen said. The focus on these two sectors reflected regional governments’ priorities, the global push into artificial intelligence and demographic shifts as populations in markets such as India and the Philippines expanded while those in Japan and China aged, she added.
