Asia Private Capital Analysis Q2 2026: A game of two halves?

Herbert Smith Freehills Kramer’s quarterly review of private capital buyouts, fundraising and disputes tells a familiar story for the first half of 2026: subdued on-market play with flashes of brilliance.

The question is whether 2026 follows the trend of recent years and stages a lively comeback in the second half, or whether geopolitical and market influences will see only the strongest private capital players risk making their move.

“With global uncertainty lingering over the field of play, the first half saw a quiet performance from Asia’s private capital fundraisers,” said funds partner Benjamin Lohr.

“There were bright spots of course, with the largest market players taking their shots and raising high-value funds.”

“Buyout pressure will only mount as the second half progresses,” said M&A partner Anthony Vasey.

“Dry powder remains high, IPO markets are ready for exits, and pressure will increase on GPs and LPs to realise their potential.”

As the US private credit default rate remains at an all-time high, the potential for defaults and enforcement disputes is increasing, and documentation quality could be an issue.

“Unlike bank lending documents, some private credit documents have not yet been stress tested through litigation, and gaps may only become apparent when something goes wrong,” said disputes counsel Aaron McDonald.

Read the quarterly data in full, and speak with our private capital team through the contacts below.