Asia-Pacific is re-emerging as a priority region for global limited partners (LPs), Coller Capital said Monday.
According to the the 43rd edition of the Coller Capital Global Private Capital Barometer, Asia-focused funds dominate as the preferred vehicle, with 71 percent of LPs using them to access South East Asia, 64 percent for China and 63 percent for Australia.
Meanwhile, India stands out as the market attracting the strongest forward momentum.
The report also showed that over the next three years, 44 percent of LPs expect to increase exposure to India via Asia-focused funds, with a further 28 percent planning increases through country-specific vehicles.
Japan also features prominently in LP plans, with 34 percent expecting to increase exposure via Asia-focused funds and 32 percent through country-specific strategies, signaling growing confidence in the depth and maturity of the Japanese market.
“Global investors’ renewed confidence in Asia Pacific private markets is evident in this edition of the Barometer,
“Furthermore, strong initial public offering (IPO) exit momentum in Asia Pacific, coupled with the growing appetite for co-investments among Asia Pacific investors, shows the region’s evolution into a more dynamic and diversified market,” said Peter Kim, Partner, Head of Asia and RMB of Coller Capital.
Overall, almost eight in ten (77 percent) global Limited Partners (LPs) report that their general partners (GPs) are preparing portfolio companies for public markets, with nearly a third (32 percent) saying multiple GPs have shared IPO plans for 2026 and a further 45 percent hearing similar indications from at least some managers.
Only 9 percent of LPs say there have been no IPO discussions to date – a marked shift from the subdued IPO environment of recent years.
This is most pronounced among Asia-Pacific LPs, with 87 percent reporting that their GPs are gearing up for 2026 portfolio company IPOs, followed by 82 percent in Europe and 71 percent in North America.
It is noted that for the third year running, private credit remains the private markets segment attracting the strongest near-term allocation growth.
Over the next twelve months, 42 percent of LPs expect to increase their target allocation to private debt or credit, more than any other alternative asset class.
However, investors are approaching the market with caution.
Nearly two thirds of global LPs (62 percent) expect dispersion of returns among private credit managers to widen over the next one to two years.
At 73 percent, Asia-Pacific LPs are the most likely to expect a wider return distribution in the period ahead.
At the same time, GP-led secondaries are set to become further embedded in the private capital ecosystem.
85 percent of LPs expect GP-led secondaries in private credit to grow further, with 65 percent anticipating selective growth among certain managers and strategies, and 20 percent expecting these transactions to become a mainstream feature of the market.
For LPs considering credit secondary transactions, opportunistic, discounted buying will be the primary motivation (31 percent), followed by access to seasoned assets (19 percent) and liquidity needs (15 percent).
Meanwhile, as the market matures, LPs are increasingly encountering ‘second-generation’ continuation vehicles, with nearly two-thirds (62 percent) saying they have already seen, or expect to see, assets rolled into subsequent CVs.
Despite this added complexity, confidence in GP execution remains high.
Three-quarters of LPs (75 percent) believe GPs are well-resourced to manage continuation vehicles, suggesting broad support for their evolution.
The rising prevalence of ‘second-generation’ CVs has been most noticeable among Asia-Pacific LPs, with 80 percent saying they have already seen, or expect to see, CVs “squared”, compared to 67 percent in Europe and 53 percent in North America.
Asia-Pacific LPs also expressed the strongest confidence in GP execution.
Among those surveyed, 94 percent believe that GPs are well-resourced to manage continuation vehicles.
The Barometer showed that although most LPs (81 percent) still opt to take liquidity from continuation vehicles, almost one in five (19 percent) typically choose to roll their investments.
This indicates growing comfort with these structures as long-term investment opportunities as well as exit routes.
“This edition of our Barometer shows how private markets continue to evolve and rebalance across different fronts: LPs are beginning to see a path back to traditional exits through IPOs, while at the same time becoming more comfortable with continuation vehicles as a long-term feature of the market,
“Against that backdrop, investors are quite rightly being more selective – about managers, strategies and structures – as they position portfolios for a more demanding environment,” said Jeremy Coller, Chief Investment Officer and Managing Partner of Coller Capital.
Meanwhile, more than two fifths of global LPs (43 percent) say co-investments are becoming more important in their fund-selection decisions, underlining their growing influence on which managers investors choose to back.
Asia-Pacific LPs were most positive on co-investments, with three-quarters (76%) saying they had become more important.
However, access remains constrained: almost one in five (19 percent) say co-investments are increasing in importance but they do not have sufficient access.
LPs also see artificial intelligence playing a growing role in private markets, particularly in shaping the careers of junior professionals.
44 percent believe AI adoption by GPs will enhance the career development of analysts starting today, although opinion remains divided: 36 percent expect it to hinder development, while 20 percent anticipate little or no impact.
It is noted that LPs draw a firm line when it comes to AI and decision-making authority.
90 percent say an AI model should not have a vote on a GP’s investment committee, underscoring a clear consensus that judgement, accountability and fiduciary responsibility should remain firmly human-led.
Fee efficiency and deal quality remain the primary drivers of co-investment demand.
More than three-quarters of LPs (78 percent) cite fee rebalancing as a key motivation, while 71 percent say access to particularly attractive investment opportunities is a major reason for participating.
Beyond economics, 38 percent of LPs say co-investments help them better understand how individual GPs operate, and 29 percent view them as a way to build internal investment expertise.
Nearly a quarter of LPs (24 percent) expect to increase their use of late primaries compared with two years ago, with the majority citing the ability to see early indications of fund performance (57 percent) as the main motivation.
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