European Pension Funds Reassess China Private Equity Amid Cautious Optimism

European pension funds and other long-term investors are reassessing China private equity opportunities as optimism returns to tech-driven markets, Bloomberg reported. Global firms including Carlyle Group, Warburg Pincus and PAG have received inquiries from European investors, though commitments remain modest after regulatory crackdowns and geopolitical tensions diverted flows elsewhere in Asia. Bain & Co. data showed top buyout firms made up just 6% of China’s deal value in 2024, down from an average of 24% between 2018 and 2023. While European investors are cautiously re-engaging, North American funds largely remain absent. Analysts say confidence will depend on large-scale transactions and successful exits to drive sustained recovery.