PE investment in the ASPAC was somewhat soft in Q1’26, with just $26 billion invested across 255 deals. That said, the region often sees a quieter first quarter given the timing of certain major holidays, including Chinese New Year, and the related propensity of dealmakers to push to get deals completed in Q4. On a rolling 12-month basis, both PE investment and deal volume fell, from $145 billion across 1,300 deals in Q4’25 to $128.5 billion across 1,208 deals in Q1’26.
ASPAC region sees $26 billion in PE investment across 255 deals in Q1’26
New wave of uncertainty making it difficult for PE investors in ASPAC region
Despite robust interest and a wealth of dry powder, PE investors in the ASPAC region continued to be very cautious with their capital in Q1’26 given the seemingly constant injection of new uncertainties into the market. While many PE investors had adjusted to a new normal in terms of the US’s latest tariff announcements — a major factor for the region given its high export exposure — the outbreak of conflict between the US and Israel and Iran during Q1’26 sent a new cascade of challenges as the ASPAC market, led by concerns over energy shocks and the physical availability of oil in key jurisdictions like South Korea, Japan and China.
Japan attracts largest share of PE investment and the most deals in ASPAC region in Q1’26
Japan continued to see very strong interest from PE investors in Q1’26, despite its largest deal sizes being more modest than those seen in 2025. During the quarter, Japan’s three largest deals included the take private of computer manufacturer MCJ Group by Bain Capital for $1.2 billion,1 the secondary buyout of beauty and personal care company FineToday by Bain Capital for $1.2 billion2 and the take private of digital printing company Raksul by Goldman-Sachs for $729 million.3
Total PE investment in Japan during the quarter was $7.6 billion; this total pulled Japan’s 12-month total down considerably, from $47.7 billion in Q4’25 to $36.7 billion in Q1’26. But the bigger story in Japan was deal volume; unlike all other jurisdictions in the region, Japan saw deal volume pick up to 91 deals during the quarter, which lifted Japan’s rolling 12-month total to a record 324 deals in Q1’26.
Trends to watch for in Q2’26
Heading into 2026, energy availability is expected to be a critical concern for investors. This will likely drive PE investment in the region toward deals with less exposure to energy input costs, at least until confidence has been restored.
Japan is expected to continue to see very robust interest from PE investors given the rapid growth of its PE market. Australia is also expected to remain a very resilient jurisdiction for PE investment over the next few quarters given its maturity relative to other jurisdictions in the region.
Pulse of Private Equity Q1’26
A KPMG quarterly analysis of global private equity activity.
Explore the regional reports
1 asia.nikkei.com, “Gaming PC maker MCJ to launch $1.3bn management buyout with Bain,” 26 February 2026.
2 baincapital.com, “Bain Capital Reaches Agreement with CVC Capital Partners for the Acquisition of FineToday Holdings,” 2 February 2026.
3 reuters.com, “Goldman-backed MBO raises bid for Japan's Raksul to $730 million,” 19 February 2026.
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