Asia’s private markets, particularly the secondaries segment, are primed for strong growth as constrained supply, attractive pricing and improving liquidity provide fresh tailwinds, said senior executives at Hamilton Lane.
While secondaries still make up less than 1% of Asia’s private market, Juan Delgado, co-chief executive of the US-headquartered investment firm, points to the rise of Asian capital, the growing sophistication of the region’s private markets players and an expanding pool of mature assets.
“We are very bullish on the (secondary) market. Asia can offer growth at a good entry price relative to Europe and the US,” Delgado told The Korea Economic Daily in a recent interview in Seoul.
“Valuations are more reasonable than the US across both domestic and export-oriented strategies.”
The region’s diversity, depth of the market and expanding intra-Asia trade flows are also drawing global investors.
Asia’s secondary market has delivered some of the highest returns among all the different strategies globally.
With $1 trillion in assets under management and supervision, Hamilton Lane participates across a range of secondary transactions, including through primary deals, as well as continuation vehicles.
Its platform strategy as a leading investor across the spectrum of the asset class gives the firm strong access to data and relationships, enabling it to secure high-quality secondary deals at attractive valuations amid constrained supply.
ASIA’S COMPELLING GROWTH STORY
Asia still represents only 10% of global private markets, half the share of Europe, which stands at 20%.
But the region’s private equity market is very diverse from venture capital in India to buyout strategies in developed countries like Japan, said Hartley Rogers, executive co-chairman of Hamilton Lane.
“There’s a huge range of different kinds of activities that make up the private equity market,” he said during the interview.
In developed Asia — Japan, South Korea and Australia — secondary deals tend to be more buyer- and equity-oriented. Investor appetite remains strong for core sectors such as domestic consumer companies, healthcare, industrials, business services and technology companies.
In China, newer and fast-growing sectors such as renewables, electric vehicles and batteries are attractive, alongside domestic consumer plays like entertainment and healthcare.
In developing Asia, notably Southeast Asia and India, Hamilton Lane is finding opportunities in venture capital and emerging secondary markets.
“Nascent venture capital industry in India has been very, very interesting. It’s gone very fast and some amazing exits. Secondaries have been attractive in size, both in India and China,” Delgado said.
Hong Kong, one of the best-performing stock markets this year, is also gaining traction from a solid pipeline of initial public offerings extending into the first half of 2026 and improving exit opportunities.
“A lot of M&A is looking at Asia strategic acquisitions. Exit deals are expected to increase in Asia. Asia is now a bright spot for liquidity,” he noted.
OWNERSHIP TRANSITION
The ownership transition of family-run businesses is expected to drive M&A activity in Asia.
China is entering its first wave of generational ownership transfers in its industrial sector, a shift that mirrors transitions already under way in Japan and South Korea.
“Many of the great companies in China today were started 30 years ago, or 25 or 35 years ago …They are entering the phase of a first-time generational transition,” Delgado explained.
EXECUTION, CYCLICALITY
Despite the upbeat tone, execution remains the biggest hurdle across Asia’s private markets, with local regulatory complexities, higher costs of operations and limited exit opportunities in some countries.
Cyclicality presents another challenge, with certain markets experiencing quicker and shorter investment cycles.
However, the region is gaining momentum from fresh capital inflows as regional funds increasingly seek investment opportunities within neighboring markets.
For instance, Delgado said Singaporean capital is showing growing interest in Korea and India.
Globally, co-Chairman Rogers said the US private equity market remains strong, adding: “There’s been a definite pick-up in M&A activity in the US as well.”
The US still accounts for about 70% of global private equity activity, while contributing 25% of the global gross domestic product.
“But all of that is changing now. I don’t think the US will be 70% of private markets in 10 years from now,” Rogers added.
