Preqin, a UK-headquartered financial data provider for alternative assets, acquired by BlackRock in 2025, has published its APAC Private Markets in 2026 report. It highlights that regional dynamics, selectivity and AI are shaping opportunities in the private capital markets.

Gerard Minjoot, who is responsible for deals at US investment manager Blackrock, highlighted yesterday that Japan continues to stand out within APAC’s private equity landscape, with deal-making and exits remaining a relative bright spot.

“In 2025, the country accounted for close to 30 per cent of the region’s total deal and exit volume, supported by accommodative monetary policy, a favourable currency backdrop, and improved alignment in exit valuations,” Minjoot said in the report. He believes that this momentum is expected to carry into 2026, although transaction dynamics may evolve alongside a shift towards higher policy rates, likely increasing the relevance of private investment in public equity (PIPE) and take-private deals as sponsors adjust to changing financing conditions. The report highlights that investor appetite remains firm, with nearly half of APAC-based investors identifying Japan as a compelling market for opportunities, placing it ahead of Western Europe and reinforcing its role as a key deployment hub in the region.

“By contrast, Greater China’s private equity market remains largely domestically driven, with local capital filling gaps left by more cautious foreign investors,” Minjoot added. Nevertheless, deal activity in Greater China rebounded in 2025 and is likely to remain relatively strong in 2026, underpinned by sustained investment in semiconductors and AI as part of broader government efforts to build domestic technological self-sufficiency.

APAC private capital fundraising reorients
The report highlights that APAC accounts for roughly 40 per cent of global GDP and a larger share of GDP growth, yet it is underrepresented in private capital assets under management (AuM) and fundraising, despite investors traditionally viewing the region as a long-term growth engine.

Amid persistent trade and regulatory tensions, it shows that private capital fundraising targeting APAC declined for a fourth consecutive year in 2025, reaching a decade-low of $94.3 billion. While fundraising began 2026 on a weaker note, there are early signs of capital reorientation. “Investors appear to be turning to Asia-regional funds once more, which accounted for over 70 per cent of total private market capital raised in the region in the first quarter of 2026, a marked improvement on the 17 per cent share for 2025,” the report states.

AI charts a different growth trajectory in APAC VC
The report also highlights that APAC’s AI venture capital landscape is continuing to expand, although its development path remains structurally distinct from Western markets. “AI-related deals accounted for just over a third of total VC deal volume in APAC and a quarter of the region’s total VC deal value in 2025, but aggregate investment has held broadly at around $20 billion over the past four years,” the report states.

Looking ahead, smaller ticket sizes, stronger deal flow for early-stage formation, and more selective late-stage deployment are expected to remain defining characteristics in the AI VC landscape. Regulatory, trade, and technology constraints, particularly in China, are contributing to a more fragmented landscape, where capital concentration remains skewed towards select markets such as Japan and South Korea and a limited set of scaled platforms.

Appetite for lower risk and income point to real estate
Despite opportunistic funds capturing the largest share of global real estate fundraising, the report emphasises that APAC-focused core and value-added real estate fundraising have proven to be more resilient as international investor appetite steers towards lower-risk strategies and income. “This shift is supported by strong fundamentals in select markets such as Japan and South Korea’s capital office sector and the Australian prime retail sector. At the same time, corporate disposals and a real estate investment trust (REIT) privatisations, totalling at least $5.6 billion in the second half of 2025, expanded access to income- generating assets, reinforcing investor preference for stability over cyclicality.