Hong Kong Private Equity Control Deals Rise as Exits Remain Slow

Hong Kong private equity control deals are becoming increasingly important as managers pursue buyouts and controlling stakes amid slower exits across Asian private markets.

Private equity investors participated in USD165.5bn of buyout transactions in 2026, around double the USD80.8bn invested in growth deals, according to PitchBook data.

Hong Kong-based funds raised USD135.6bn across three buyout vehicles, including EQT’s BPEA Private Equity Fund IX, which accounted for USD122.3bn.

Managers are increasingly targeting mid-sized companies where value can potentially be created through acquisitions and operational improvements, while investors remain selective about new commitments.

Data centres and semiconductors continue to attract attention amid artificial intelligence-driven demand.

However, elevated valuations are prompting some managers to look further along the infrastructure chain towards areas including power generation and energy storage.

The shift towards control transactions comes as private equity managers face pressure to generate exits and return capital to investors.