Key Takeaways
- • Southeast Asia private equity exits rebounded in Q2 2026 to US$4.2 billion, the strongest level since early 2022, according to the EY-Parthenon Southeast Asia Private Equity Pulse (Q2 2026).
- • Bain's Southeast Asia Private Equity Report 2026 found SEA exit value fell 32% in 2025 to approximately US$4 billion, with median exit timelines continuing to lengthen.
- • Across APAC, M&A activity is concentrated in AI infrastructure, data centres, and energy transition sectors, with GPs competing fiercely for quality assets.
- • Japan's M&A deal flow continues to surge, with public takeovers making up the bulk of activity, while India's growth is driven by domestic consumption and public market activity.
- • LP fundraising has grown more selective, favouring larger GPs with specialised strategies and a clear path to asset realisation.
Summary
White & Case's Asia-Pacific Private Equity update, published 26 October 2026, describes a resilient but multi-speed regional market. Q2 2026 dealmaking held up year on year across APAC, supported by several multibillion-dollar transactions, despite geopolitical events and macroeconomic turbulence. Beneath the headline figures, activity is concentrated in select sectors and markets. Japan's M&A deal flow continues to surge on structural change, and India's growth is driven by domestic demand, consumer markets and public market activity. Other markets in the region have held steady, supported by sector-specific deals in high-growth areas.
M&A activity across APAC is heavily concentrated in AI and energy transition sectors. Deal flow has clustered around the AI infrastructure ecosystem, including data centres, adjacent digital technology and power-related infrastructure such as grid stability and management. White & Case notes that sector expertise has become crucial for dealmaking at speed when quality assets come to market.
Liquidity presents a mixed picture. Bain's Southeast Asia Private Equity Report 2026 found SEA exit value declined 32% in 2025 to approximately US$4 billion, with trade sales remaining the dominant exit route and IPO activity showing only early signs of recovery. Median exit timelines continued to lengthen as sponsors held back assets amid political, macroeconomic, inflationary, interest rate and AI valuation uncertainty. According to the EY-Parthenon Southeast Asia Private Equity Pulse (Q2 2026), however, SEA exits rebounded to US$4.2 billion in Q2 2026, the strongest since early 2022. The update characterises the market as selective, with sophisticated GPs holding quality assets and using alternative liquidity strategies such as capital recycling. Bain also reported net distributions turned positive after three years of net outflows, offering partial relief to LP liquidity pressures.
Fundraising has improved alongside liquidity but remains selective. LPs are favouring larger GPs with specialised strategies and demonstrated pathways to realisation, often in sectors benefiting from industry tailwinds. White & Case also notes that APAC outbound capital has been more materially reduced than inbound capital by macroeconomic and political instability, with mega deals sustaining inbound deal value.
Regulatory developments include reforms to Australia's foreign investment regime, a new substantial holding notice regime requiring disclosure of equity derivative positions, Japan's Cabinet Office approval of a bill amending the Foreign Exchange and Foreign Trade Act, ongoing refinement of Australian capital gains tax proposals following the 2026 Federal Budget, and a New South Wales data centre framework providing fast-tracked planning approvals.
The Japan spotlight highlights public takeovers as the bulk of 2026 M&A activity, with recent White & Case-advised deals including Yamauchi-No.10's campaign at Toyo Construction, EQT's take-private of Fujitec, and Apollo Global Management's agreement in early 2026 to acquire Nippon Sheet Glass in a take-private valued at approximately US$3.7 billion.
M&A activity across APAC is heavily concentrated in AI and energy transition sectors. Deal flow has clustered around the AI infrastructure ecosystem, including data centres, adjacent digital technology and power-related infrastructure such as grid stability and management. White & Case notes that sector expertise has become crucial for dealmaking at speed when quality assets come to market.
Liquidity presents a mixed picture. Bain's Southeast Asia Private Equity Report 2026 found SEA exit value declined 32% in 2025 to approximately US$4 billion, with trade sales remaining the dominant exit route and IPO activity showing only early signs of recovery. Median exit timelines continued to lengthen as sponsors held back assets amid political, macroeconomic, inflationary, interest rate and AI valuation uncertainty. According to the EY-Parthenon Southeast Asia Private Equity Pulse (Q2 2026), however, SEA exits rebounded to US$4.2 billion in Q2 2026, the strongest since early 2022. The update characterises the market as selective, with sophisticated GPs holding quality assets and using alternative liquidity strategies such as capital recycling. Bain also reported net distributions turned positive after three years of net outflows, offering partial relief to LP liquidity pressures.
Fundraising has improved alongside liquidity but remains selective. LPs are favouring larger GPs with specialised strategies and demonstrated pathways to realisation, often in sectors benefiting from industry tailwinds. White & Case also notes that APAC outbound capital has been more materially reduced than inbound capital by macroeconomic and political instability, with mega deals sustaining inbound deal value.
Regulatory developments include reforms to Australia's foreign investment regime, a new substantial holding notice regime requiring disclosure of equity derivative positions, Japan's Cabinet Office approval of a bill amending the Foreign Exchange and Foreign Trade Act, ongoing refinement of Australian capital gains tax proposals following the 2026 Federal Budget, and a New South Wales data centre framework providing fast-tracked planning approvals.
The Japan spotlight highlights public takeovers as the bulk of 2026 M&A activity, with recent White & Case-advised deals including Yamauchi-No.10's campaign at Toyo Construction, EQT's take-private of Fujitec, and Apollo Global Management's agreement in early 2026 to acquire Nippon Sheet Glass in a take-private valued at approximately US$3.7 billion.
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