Australia emerges as key player in 2025 APAC private equity market

By Newsdesk

December 12 2025
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Australia has solidified its position as a significant player in the Asia-Pacific (APAC) private equity market, according to a new analysis by global private markets firm HarbourVest Partners. The country accounted for approximately 10% of all private-equity backed exits in the region this year, contributing over US$5.5 billion in realisations, as detailed in HarbourVest’s 2026 Market Outlook.

Australia emerges as key player in 2025 APAC private equity market

This achievement comes amid broader liquidity challenges in the APAC region, where exit pathways have remained open in Australia, providing general partners (GPs) and limited partners (LPs) with meaningful deal flow. This has positioned Australia as a critical contributor to the APAC market, despite the hurdles confronting the broader region.

The outlook for Australian fundraising is equally promising. The 2026 Market Outlook forecasts a robust fundraising environment driven by an upswing in middle-market fundraising. Australia, alongside Japan, is expected to be one of the more active fundraising markets in APAC next year. The country's mature, GP-friendly ecosystem, supported by dependable regulatory settings and high-quality opportunities, has been pivotal in maintaining this momentum.

Hemal Mirani, Head of APAC and Managing Director at HarbourVest, emphasised Australia’s integral role in the regional market. “Our analysis highlights a continuing theme in the APAC private equity market: that Australia, with its deep pool of mature middle-market firms, remains a key driver of regional investment, exits, and fundraising activity,” she said.

Mirani further elaborated on the findings, stating, “The findings in our 2026 Market Outlook reflect the significant presence of Australia’s PE market on the regional and world stage. With increasing interest in alternative assets from a widening pool of investors in the ANZ region, the PE market is well poised for further growth in the years to come. We expect Australian PE firms to be a key contributor to regional activity in 2026, as global liquidity, transaction and fundraising activity regain pace.”

The broader APAC market is also witnessing positive momentum. HarbourVest’s 2026 outlook highlights an increase in both dealmaking and private equity exits, with year-to-date exits across the region through September reaching US$54 billion. This marks a 28% increase year-over-year and represents 90% of full-year 2024 levels. Investment activity has stabilised since 2023, with Q3 2025 year-to-date activity registering US$75 billion—a 26% year-over-year gain despite ongoing global macroeconomic volatility.

While public market valuations have climbed in recent years, surpassing HarbourVest’s Global Buyout Benchmark on a 12-month trailing return basis, the long-term performance benefits of private markets remain evident. The Market Outlook reveals that the 5- and 10-year trailing returns of private equity buyouts have outperformed the MSCI ACWI Investable Market Index (MSCI ACWI). Notably, the 10-year trailing return of private equity buyouts has exceeded public markets by more than 3% on an annualised basis.

In response to the rising demand from a diverse set of investors, private markets firms are innovating with new products. Semi-liquid evergreen funds are gaining traction globally, offering greater liquidity and open-ended access to private equity. These funds appeal to individual and smaller institutional investors due to their investor-friendly structures, providing immediate private equity exposure with compounding returns. By mitigating the traditional J-curve, they also offer administrative and structural tax reporting advantages.

Evergreen private-markets vehicles reached US$427 billion in assets under management (AUM) by the end of 2024. Conservative forecasts predict 20% annual growth, with evergreen funds expected to surpass US$1 trillion in AUM by 2029.

As the APAC private equity landscape evolves, Australia’s role appears more crucial than ever. The country’s ability to navigate liquidity challenges and maintain robust fundraising and exit activities underscores its importance in the region. With promising forecasts and innovative financial products on the rise, Australia is poised to remain a key player in the APAC private equity market for the foreseeable future.

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