India and Japan Fuel Asia private Equity Fundraising Despite Global Exit Challenges
TOKYO – Private equity investment in India and Japan is bucking a regional trend, emerging as a key driver of fundraising in Asia even as a global backlog of companies seeking exits weighs on the broader market.
According to data from Preqin,Asia-focused private equity funds raised $9.6 billion between March and June.This positive momentum is largely attributed to strong investor interest in opportunities within India and Japan, contrasting with a more cautious approach to other Asian markets. The discrepancy highlights a shift in investor focus towards economies demonstrating robust growth and technological advancement.
The current surroundings presents a challenge for private equity firms globally,with a significant number of portfolio companies awaiting sale or initial public offerings. This “dry powder” situation – funds with committed capital but limited investment opportunities – is creating pressure and impacting overall deal flow. However, India and Japan are proving resilient, offering a pipeline of attractive investment targets, particularly in the technology sector. Deals related to manufacturing,however,are experiencing slower progress.
