Private-equity investments in China could be on a stronger recovery path, bolstered by increased capital from the Middle East and adaptive strategies from US funds, according to Bain & Company.
“A positive momentum for China could lead to a more positive outlook already in 2025 and 2026,” Sebastien Lamy, co-leader of the Asia-Pacific private-equity practice for the global consultancy, said on Friday, adding that several factors were fuelling a potential recovery.
“Increasingly, we have seen private capital, especially from the Middle East, coming in and starting to fill the private-capital funding gap,” he said.
“We have started deploying capital in China since 2015 and actually stayed invested in China at the time when a lot of the Western firms pulled out of China and have been accelerating deployment [across] Asia,” Marc Antaki, deputy chief strategy and risk officer of Mubadala Investment, an Abu Dhabi sovereign wealth fund, said at the Milken Global Investor Symposium in Hong Kong on Monday.
In addition, some US-origin funds were adapting their China strategies towards “less risky and exposed” investments, Lamy said, pointing to examples such as cross-border deals.
