Asia Pacific’s private markets are entering a new phase of maturity, marked by sustained momentum, deepening global connectivity and an increasingly sophisticated investor base. Despite a complex macro and geopolitical backdrop, capital deployment across the region remains resilient, fuelled by long term growth fundamentals and expanding opportunities in private equity, private credit and emerging fund structures. In this one-on-one session, Christophe Picardel, Regional Head of Private Capital, Asia Pacific, Securities Services at BNP Paribas, explores the shifts defining APAC’s evolving private markets landscape and the role of close partnerships in supporting that growth.
What trends and drivers are you seeing in the APAC private markets?
For APAC private markets, the prevailing trend is sustained momentum in fundraising and deal activity. We continue to see strong interest from US asset managers in the region – reflecting a deepening Asia-US investment corridor. Capital is not only being committed, but actively deployed, reinforcing APAC’s role as a core component of global private markets portfolios.
Private equity remains the anchor strategy, driven by long-term growth fundamentals, corporate transformation opportunities and a broad mid-market opportunity set. Real estate and infrastructure allocations remain relatively stable, benefiting from structural tailwinds such as urbanisation, digital infrastructure build-out, and the energy transition. Private credit is gaining attention but remain at an earlier stage of development than in the US and Europe.
Key local markets including Singapore, Hong Kong, Korea, Japan, India and Australia continue to attract strong investor interest, underpinned by mature institutional investor bases and increasingly sophisticated deal ecosystems.
What do deals you’ve observed tell us about the evolving Asia Pacific market?
From a geographic perspective, deal flow has been particularly strong in markets such as India, Japan and Australia, with direct private equity serving as the primary engine of activity. This points to a market that is deepening in both scale and resilience, even against a complex global backdrop.
Geopolitical uncertainty has occasionally translated into an uneven investment tempo. These “fast–slow motion” cycles are now increasingly characteristic of the asset class, but they have not undermined the underlying investment case, which continues to be supported by structural growth, corporate change and ongoing capital needs.
What opportunities are emerging?
We are seeing strong growth in direct lending, distressed debt and special situations, with much of the early momentum driven by asset managers extending their playbooks in Asia. This has helped accelerate market maturity and expand the opportunity set for institutional investors.
At the same time, local capability is building. Managers based in Hong Kong and Singapore are developing comparable capabilities, while asset managers in China are increasingly looking beyond domestic markets to deploy capital throughout Southeast Asia. This convergence of global expertise and local market knowledge is contributing to a more competitive private credit landscape.
Investor demand remains robust. Allocators throughout the region continue to add private credit exposure as part of their diversified portfolios. We also expect strong US, European, and Asian investment flows to continue, supporting further development in the region.
How does private credit compare to private equity in the region?
Private equity remains the more mature and dominant private markets strategy, particularly in large, scalable markets such as India where long-term growth dynamics continue to support strong deployment. By contrast, private credit markets are still evolving along with supporting infrastructure.
One of the defining differences versus Western markets is Asia’s comparatively high level of banking liquidity. While private debt accounts for roughly 75% of corporate lending in the US and around 12% in Europe[1], it remains significantly underpenetrated in Asia where banks still hold a substantial share of the lending market.
That said, momentum is building. Growth in Asian private credit has been led largely by international managers entering the region, often extending established strategies. In Singapore, for example, frameworks such as the Monetary Authority of Singapore’s Long-Term Investment Fund (LIF), which mirrors aspects of Europe’s long-term investment fund regime, are opening pathways for broader investor participation while introducing enhanced liquidity features.
What have you observed specifically about investor trends in the region?
One of the most notable trends is the rising allocation to private credit and private debt. This shift has been accompanied by newly available investment fund structures that appeal to investors seeking greater flexibility, better liquidity management and more efficient capital deployment.
While US and European market influences remain significant, the region is not simply replicating offshore models. Instead, Asian investors and managers are selectively adapting global approaches to local market conditions resulting in a more differentiated ecosystem. At the same time, the boundaries between listed and unlisted markets are becoming increasingly blurred driving greater demand for robust custody, connectivity and operational infrastructure.
What assets or sectors are gaining momentum?
Momentum continues in infrastructure, particularly in Southeast Asia and markets such as India, Indonesia and the Philippines. Storage and warehouse technology, along with power and energy assets – including selected renewable strategies – are also attracting capital. Advanced technology is another area of growing focus, with interest extending into emerging areas such as quantum computing, where investors are positioning early around long-term innovation cycles.
Sector momentum varies across the region with Japan and Korea exhibiting more stable investment patterns, while Southeast Asia remains more dynamic and fast evolving – underscoring the importance of a localised approach to allocation.
How does global asset servicing and BNP Paribas’ Securities Services business play a role?
Investors and managers are no longer operating within neatly defined silos.
The servicing landscape is also evolving. Specialist administrators and local providers are expanding their capabilities in private markets and global custodians are adapting their models to ensure connectivity and consistency across jurisdictions.
As multi-jurisdiction fund structures become more common (e.g. Singapore VCCs, Hong Kong OFCs, cross-border evergreen vehicles), robust operating models and integrated data flows are increasingly critical. For managers navigating complex cross-border fund flows, the value of integrated banking and administration capabilities is becoming more pronounced.
BNP Paribas’ Securities Services business combines specialist expertise in private markets with the scale and track record of a global custodian. Our strong regional franchise – Singapore, Hong Kong and Australia – is backed by a global platform that can support and administrate fund structures across Asia, Europe and the US. This enables innovations developed in one market to be deployed efficiently in others, while remaining sensitive to local nuances.
Our integrated private‑capital platform provides end‑to‑end support, from structuring and fund administration to banking capabilities and ongoing servicing, positioning us as the partner of choice for managers seeking to scale throughout the region.
What is the future of private markets in Asia?
Asia’s private markets are no longer ‘catching up’ to global peers – they are established and evolving on their own terms. While global capital and frameworks continue to shape development, the region is increasingly charting a distinct path, particularly in Southeast Asia, where global experience is being used to accelerate innovation rather than simply replicate offshore models.
Cross-border investment flows increasingly depend on seamless data and digital integration, making global platforms and consistent operating models a critical enabler of future growth.
By supporting connectivity between asset manager and asset owners, BNP Paribas’ Securities Services business plays a role in shaping the next stage of Asia’s private capital ecosystem.
Final thoughts
While global frameworks continue to influence the market, Asia is forging its own trajectory, driven by local capability and cross-border collaboration. In this evolving environment, seamless data integration, robust operating models and strong servicing partnerships will be critical for managers and investors to capitalise on long term opportunities across the region.
[1] AIMA: The convergence of European public and private credit markets, published on 22 September 2025
This article was first published by PitchBook in its 2026 Southeast Asia Private Capital Breakdown report.