Asia Pacific (APAC) is re-emerging as a priority region for global limited partners (LPs) as a reopening IPO window revives expectations around liquidity, according to Coller Capital’s latest Global Private Capital Barometer.
Reconsidering APAC as an investment darling, nearly 71% of LPs are using Asia-focused funds to access Southeast Asia, 64% do so for China, and 63% for Australia.
However, LP deployment in country-specific funds is more selective, led by India with 31%, China with 29%, and Japan with 25%, the report shows.
Despite being the most favoured region through pan-Asia funds, Southeast Asia represents the lowest selection at the country-focused fund level, both in terms of the current exposure (4%) and planned deployment (6%). The imbalance highlights ongoing fundraising headwinds for local managers.
Only one fund close was recorded in H1 2025, compared to 6 final closes each in the previous two years. No debut fund managed to have a final close in two years, according to DealStreetAsia DATA VANTAGE data.
Looking ahead, India appears to have the strongest forward momentum. Over the next three years, 44% of LPs expect to increase exposure to India via Asia-focused funds, with a further 28% planning increases through country-specific vehicles. Japan also features prominently in LP plans, with 34% expecting to increase exposure via Asia-focused funds and 32% through country-specific strategies.
“Strong IPO exit momentum in Asia Pacific, coupled with the growing appetite for co-investments among Asia Pacific investors, shows the region’s evolution into a more dynamic and diversified market,” said Peter Kim, Partner and Head of Asia and RMB at Coller Capital.
A proportion of 87% of LPs reported IPO discussions among their GPs in Asia, followed by Europe and North America.
Coller’s Global Private Capital Barometer captured the views of 108 private capital investors globally who oversee a combined $1.97 trillion in assets under management.
Signs of ‘CV-squared’ structures
The report also flagged growing use of continuation vehicles (CVs), including so-called “CV-squared” structures where existing CVs are rolled again, with 62% of respondents saying they have already seen, or expect to see, this happening.
While this implies longer holding periods of the underlying assets, most LPs believe that GPs have adequate to strong resources for managing CVs.
“We have full conviction that CVs are useful tools when done right. […] Asia’s adoption of CVs is rising, but we believe alignment and clear investor options are critical for maintaining the reputation of these instruments in the future,” Kim told DealStreetAsia in a recent interaction.
Within GP-led strategies, appetite is building for private credit secondaries, with 85% of LPs expecting further growth, and 20% foreseeing it will become a mainstream tool across credit funds.
Overall, despite viewing private credit as the most attractive asset class for future allocation, LPs are approaching it with caution. Nearly two-thirds of institutional investors anticipate wider dispersion of returns among private credit managers over the next two years. This expectation is the most pronounced among APAC LPs, at 73%.
