APAC Private Capital Firms Face Growing Fundraising Challenges

Fundraising has overtaken exits as the biggest challenge confronting Asia-Pacific private equity and venture capital firms, according to new research by DealStreetAsia and Vistra Fund Solutions.

The APAC private capital survey found investors have become increasingly selective as geopolitical uncertainty and tighter liquidity reshape fundraising conditions.

Among 105 senior industry executives surveyed, 57.5% identified fundraising as the principal source of friction, compared with 26.4% who cited exits and 14.9% who pointed to capital deployment.

Only 19.3% of respondents completed fundraising for their latest fund within 12 months, while 40% reported that fewer than 40% of investors from previous funds recommitted capital.

Despite these fundraising challenges, the APAC private capital survey ranked India as the region’s most attractive investment destination, ahead of Japan, mainland China, Singapore and South Korea, reflecting favourable growth prospects and improving liquidity.

The findings illustrate how private capital managers are adapting strategies as fundraising becomes increasingly competitive across Asia-Pacific.