The private capital industry rolled into Singapore last week for SuperReturn Asia. The conference is a key moment for international firms to meet in person with their Asian investors, check up on regional portfolio interests, and importantly for everyone to take the global pulse from an Asian perspective.

Unexpectedly, the overall sentiment was positive despite macroeconomic uncertainty, fundraising challenges, and the pressure on fund managers to deliver exits and boost distributions.

There were pockets of positivity in every discussion, and the event was rich with insights on the resiliency of markets, perspectives on strategic pivots, and on the evolving role of private capital.

A few trends stand out:

1. Tariffs are less disruptive than expected

Far from obsessing about the implications for investments and portfolio companies in the APAC region, most see opportunity for savvy operators. It’s a chance to refocus portfolios and companies on exciting cross border, regional investments, and across both the consumption and production sides.

Of course, this sort of supply chain change – what some call Globalisation 2.0 – comes with new risks. But, with the right partners who have on the ground experience navigating a fragmented region, the result could be more stability and growth than before.

2. Private credit remains nascent in Asia

The reality is banks still do most of the regional lending activity, which in the US or Europe is increasingly picked up by private credit. Part of the reason is relationship driven but another is a banking sector that didn’t undergo the same level of regulatory disruption post global financial crisis. However, most predict the march of private credit quickening in Asia over the years ahead.

3. India is taking centre stage

Everywhere we turned, we heard a similar theme: “It’s happening in India”. India’s presence in private capital is increasing, and most of these GPs are looking East, not West, for growth and new opportunities. The country’s equity capital markets are buoyant, with financial inclusion improving and more retail investors getting savvy to their investment opportunities in private markets.

From fundraising and exits to innovation and IPOs, India is a bright spot bucking the trends. It remains one of the fastest-growing countries in the region, underpinned by strong fundamentals, and a robust exit environment that continues to attract investor interest.

In a country still dominated by the banks for lending, but one that also has around $70bn of retail investor cash annually looking for a home, it’s likely that money will underpin the growth of private credit, both in India and into Indian VCs looking to the rest of Asia for better returns.

4. Sustainability and impact investing is alive and growing in Asia

Given the continent’s immense diversity of natural environment and socio-economic backgrounds, combined with the mega trend towards the energy transition, there are abundant opportunities for focused impact-led strategies.

Sentiment in the US (and to an extent Europe) is subdued under the current White House Administration, so these impact funds are now looking to target both local, Asian capital and European capital for their fundraising, rather than the US and despite its larger capital pools.

By coincidence, last week Australia also launched its first ever climate risk assessment for the country, committing to spend $6 billion towards climate change mitigation by 2030.

5. Exits are challenging but achievable

Exits and distributions may be at a low ebb, but there have been exit success stories, especially through buyouts. GPs are strengthening their portfolio management capabilities to build exit-ready and resilient businesses, doubling down on governance and value creation strategies, and recognising that sustainable exits increasingly hinge on deep operational transformation rather than purely financial metrics.

6. Fundraising is evolving

Fundraising remains incredibly competitive, but not in the same way across different markets and sectors. In response, strategies are evolving, with fundraisers exploring alternative structures such as evergreen funds, which offer flexibility and long-term alignment with a broader pool of investors, as traditional closed-end funds encounter growing friction.

7. Rising sectors are reshaping the landscape

Eyes are on several rising sectors that appear to be offering long-term resilience and transformational potential. Digital infrastructure, particularly data centres and cloud connectivity, continues to attract outsized capital, and as one VC founder put it, “I now look at every investment opportunity through the lens of AI.” In the words of another, “innovation is now democratised across geographies, and if you aren’t in Asia, you will miss out.”

From headwinds to tailwinds: The future of venture capital in Asia

What stood out the most was a determination to navigate industry headwinds. In a candid dialogue around the state of Asia’s venture capital ecosystem, we asked whether the sector was facing an existential crisis, the response was clear: the only crisis is for the “tourist investors” who have exited. For those who remain on the ground and are committed to Asia, there is cautious confidence and anticipation of better years ahead.

Across multiple conversations, the sentiment was similar, there are tailwinds to harness, but only those with real local presence and capability will know where they are, and how to ride them.

Mark Worthington, Managing Director

H/Advisors Singapore

[email protected]

Sam Turvey, Managing Partner

H/Advisors London

[email protected]