Asia-Pacific private equity exits reached $150 billion in 2025, a 24% rise from 2024, but analysts warn the region’s overhang remains unresolved. Bain & Co’s report highlights China’s dominant role, contributing $46.2 billion—30% of the total—with a 78% year-on-year surge in exit value. This rebound marks China’s recovery from years of stagnation, though the market avoided reliance on mega-deals, signaling healthier activity.

IPOs and open-market sales drove $60 billion (40% of exits), up from $35.2 billion in 2024. Secondary exits, including sponsor-to-sponsor sales, added $32 billion. However, tariff shocks from Trump-era policies disrupted dealmaking, particularly in Southeast Asia, where export-oriented manufacturing assets saw muted demand. India’s investment dropped 13.9% to $34.7 billion, while Japan’s market grew 27% to $33 billion, fueled by carve-outs and favorable listing rule changes.

Japan’s recovery stands out, with corporate carve-outs and business succession deals gaining traction. Analysts cite Tokyo’s upcoming listing rules as a catalyst for future deals. Conversely, Southeast Asia’s exit value fell to $4 billion (from $5.9 billion), and South Korea’s political turmoil dampened leveraged deals. Regional fundraising hit a five-year low at 4.6% of global capital, though 2026 shows promise with large funds like KKR’s $15 billion Asian Fund V nearing closure.

Bain partner Ben MacTiernan noted China’s improved deal flow could sustain momentum, but clearing the backlog requires consistent performance. While net cashflows turned positive for the first time since 2021, the region’s average holding period extended to four years, underscoring lingering liquidity challenges.