The view from inside the Marina Bay Sands Convention Centre was that it continues to transform from a local GP meets international LP event to a more blended spread of global participants, but there is still an absence from some of the big regional LPs, particularly from Japan, Korea and Australia. Attendance from U.S. sponsors under the $10bn mark was also thin – our count was less than a dozen firms in this space were represented. Notwithstanding, there was a sense of cautious optimism inside and outside the venue. Colleagues from our Singapore office were joined by senior executives from all Campbell Lutyens' global practice areas – hosting 94 LP/GP meetings across primaries, secondaries, and GPCA.

Here are the key takeaways:

Reasons to look forward

APAC’s private equity market has endured a prolonged capital drought. However, in Singapore, there was a palpable sense that LP sentiment is improving, with economic uncertainty, trade tensions, and liquidity constraints in the US prompting European and Middle Eastern LPs to reconsider the region. As one global institutional investor flagged early in the week, “we’re excited about the investing opportunities across APAC and will be opening a Singapore office shortly.” LPs continue to be most focused on developed APAC, most particularly Japan and Australia, as well as India, where strong public markets and IPO pipeline are driving renewed interest. However, the ‘flight to quality’ will remain - only established managers with a track record of delivering strong and consistent returns are drawing LP interest. While PE remains core for the market, LP interest in alternatives continues to gather momentum. Private Credit and Infrastructure are gaining traction, reflecting a broader appetite for yield and downside protection.

“Asia based LPs are very much open for business and continue to deploy with a strong preference for established mid-market players in North America and Europe”. James Shipperlee, Partner

China: a cautious reawakening

China’s outlook remains mixed. While LPs aren’t redeploying at scale, signs of recovery are emerging. A thaw in Sino-US relations and a 20% YTD1 rise in the Hang Seng Index are encouraging. Investors considering the region are primarily targeting sectors with domestic resilience - advanced manufacturing, green logistics, healthcare, and consumer staples. On the secondaries side, with dry powder still largely focused on US and European deal flow, some investors are seeing China secondaries as an opportunity to deploy on a less competitive basis.

Asian LPs target the US mid-market

Asia-based LPs, especially family offices, endowments, and insurance companies are becoming more active global allocators to alternatives, reflecting the region’s growing institutional maturity. Whilst we observe an improving sentiment from European and Middle Eastern LPs for Asian PE, Asia based LPs are more focussed on the US and EU mid-market continuing their rebalancing away from mega-funds toward sponsors in the $2–8bn range. Industrial, aerospace, defence, and manufacturing sectors are preferred, especially asset-light models. However, with regards to US PE tariff-related risks remain a concern and come up in most meetings.

Exits and the liquidity trap

Consistent with SuperReturn Asia’s big brother event in Berlin in June, liquidity constraints inexorably entered the conversation. This is particularly pronounced given the maturity cycles of the majority of the region’s sponsors. Many firms which set up over the past decade have yet to achieve meaningful realisations, stifling deployment momentum among GPs and LPs alike. GPs are increasingly considering Continuation Vehicles (CVs) as a core portfolio management tool to revitalise the market.

Consolidation

Against the backdrop of active GP consolidation in the US and Europe, appetite for APAC managers is showing signs of return to the agenda for select acquirers. This is led by larger global GPs and asset management platforms seeking scale, geographic reach, and product breadth. Minority stake activity in the region, though subdued in recent years, is also showing signs of renewed interest. Looking outward, Asia-based investors signalled growing interest in GP M&A and minority stake transactions with global managers, currently with a preference for European targets - a trend poised to accelerate as APAC investors seek to deepen relationships with key GPs.

“After being somewhat muted away from the global GP M&A and GP staking scene, we are witnessing renewed interest for, and from, local players”. Thomas Liaudet, Partner

Campbell Lutyens cocktail party

Against the Marina Bay skyline, Campbell Lutyens hosted over 200 clients and friends of the firm at its annual cocktail party. Co-hosted by Suvir Varma (Asia Pacific Chairman) and Gordon Bajnai (CEO), the evening brought together senior leaders across the private capital ecosystem. Thanks to all those who contributed to a fun and engaging evening.

“It was wonderful to have close to 200 global and regional LPs and GPs attend our cocktail party to exchange views on the prospects for private capital across APAC”. Suvir Varma, Asia Pacific Chairman.