Asia-Pacific Venture Capital Leads Private-Market Returns Despite Investor Caution

Asia-Pacific venture capital delivered the region's strongest private-market performance in 2025, although investors remain cautious about increasing allocations amid ongoing geopolitical uncertainty.

Reports from MSCI and Coller Capital showed global venture capital generated returns of 22%, ahead of private equity's 13.3%, while Asia-Pacific venture capital produced regional returns of 15.3%.

Globally, venture capital achieved a 19% internal rate of return, helped by its strongest quarterly performance since 2021.

Nevertheless, investor sentiment remained measured. Around 60% of institutional investors plan to keep venture capital allocations unchanged in 2026, while 25% expect to reduce exposure and only 15% intend to increase commitments.

Asia-Pacific investors were more optimistic than their global peers, with 53% planning to establish additional general partner relationships.

However, survey respondents also highlighted geopolitical risks as an increasingly important consideration influencing private-market allocation decisions across the region.