Private equity markets across the globe are showing a mixed picture in 2025. According to PwC, deal volumes have slowed compared to prior years, reflecting ongoing macroeconomic uncertainty, tighter financing conditions, and geopolitical risks. Yet, sponsors remain highly focused on deploying capital in opportunities aligned with long-term transformation.

Datasite’s Deal Drivers reports for HY 2025 point to similar trends. In EMEA, compelling financing costs are improving conditions for PE funds, even though capital is concentrating into fewer, larger hands; nearly half of that total was raised by just five funds. In the Americas, PE buyers are eyeing brand revitalization plays, targeting mature companies with strong name recognition but operational shortcomings.

Against this backdrop, APAC stands out as a region where investors continue to uncover compelling opportunities despite the global slowdown.

Japan at the center of regional momentum

Corporate governance reforms, low interest rates, and a deep pool of under-managed assets have created a compelling environment in Japan for PE sponsors.

One standout transaction was Bain Capital’s US$5.5bn acquisition of York Holdings, a carve-out from Seven & i Holdings. The deal followed a failed US$58bn management buyout and reflects Bain’s confidence in Japan’s consumer sector. Seven & i retained a minority stake as it refocuses on its core 7-Eleven business.

In healthcare, Bain Capital also acquired Mitsubishi Tanabe Pharma for just under US$3.4bn, anticipating regulatory reforms that could streamline Japan’s drug approval process and protect pricing for high-value therapies.

This focus on large-scale carve-outs and sectoral transformation is echoed in the league tables: Bain Capital ranked second in APAC by deal value (US$13.1bn across 16 deals) in H1 2025, demonstrating its ability to execute conviction bets across the region.

Australia’s moment in play

Australia also saw headline PE activity. CC Capital Partners, a U.S.-based firm, advanced a US$2.1bn bid for wealth manager Insignia Financial. The deal followed Bain Capital’s withdrawal and remains in play amid market volatility.

The advisor league tables placed CC Capital among the top ten in terms of deal value, reflecting how even selective plays in Australia can have an outsized regional impact.

Big-ticket global sponsors lead by value

The PE advisor league tables in the Deal Drivers: APAC HY 2025 report highlight the dominance of global mega-funds in APAC dealmaking.

Carlyle Group topped the region by value with US$25.6bn across 12 deals, underscoring its focus on large-scale carve-outs and growth opportunities.

Bain Capital, with US$13.1bn across 16 deals, secured second place, reflecting its conviction-led approach in Japan and beyond.

KKR, with US$11.3bn across 16 deals, ranked third, continuing to be a key player in complex transformations.

Together, these three firms accounted for nearly half of all disclosed PE deal value in the region. This concentration illustrates that while overall deal volume has slowed, capital deployment is skewed toward high-profile transactions.

Mid-market and domestic specialists add breadth

Beyond the headline numbers, mid-market activity remains vibrant, driven by firms targeting sector specialization and regional depth.

Warburg Pincus led by volume with 6 deals worth US$951m. Hillhouse Investment (9 deals, US$776m) and Accel Partners (10 deals, US$591m) also remained highly active.

Japanese institutions such as Osaka SME Investment & Consultation (25 deals) and Global Brain Corp (22 deals) dominated domestic deal counts, highlighting how succession-driven and growth equity transactions remain a cornerstone of local PE activity.

These firms demonstrate that while mega-funds capture the largest tickets, smaller and domestic players continue to shape the middle of the market.

Navigating a diverging market

In summary, the first half of 2025 has demonstrated private equity’s continued ability to adapt and find opportunity amid uncertainty. Mega-funds and global sponsors are driving headline value through large, conviction-led transactions, while mid-market and domestic specialists continue to add depth and resilience across regions.

However, it’s important to recognize that this positive momentum is not uniform. Both APAC and EMEA have seen notable declines in overall deal volumes compared to previous years, reflecting ongoing macroeconomic and geopolitical headwinds. In APAC, fundraising has also dropped to multi-year lows, raising questions about the sustainability of current activity levels.

As the market continues to diverge, sponsors and advisors will need to remain highly selective and agile—balancing optimism about transformational opportunities with a clear-eyed view of the challenges ahead. For those looking to ensure they are well-prepared for their next transaction, Datasite’s deal-readiness checklist offers practical guidance to streamline key activities across the deal journey.