It was a slow start to the year for private capital markets in APAC, with activity still subdued following a lackluster end to 2022. Fundraising fell and dry powder edged upward as deal flows dropped below what they had been in 2021, driven by lower volumes in China. Despite risk appetite toward China falling sharply and investors shifting their focus to smaller private capital markets such as Southeast Asia and India, the country remains the region's heavyweight.

Our new APAC Private Markets Q1 2023: Preqin Quarterly Update explores fundraising and deal activity across asset classes during the first quarter, and why Greater China is vital for recovery in the region. While we maintain a relatively positive outlook for private capital’s long-term performance in APAC, there may be some downside in our forecasts when we revisit them later in the year.