Asia-Pacific private equity faced significant disruption in 2020 due to Covid-19 but demonstrated resilience, achieving record deal value as activity rebounded in China, India, and Japan. Returns remained strong and continued to outperform public markets, supported by growth in digital sectors such as e-commerce and e-learning. However, exits stayed near a decade low, with exit value declining sharply as investors delayed sales amid uncertainty, while IPOs became the dominant exit route. Fund-raising also dropped for a third consecutive year, though dry powder reached record levels. Looking ahead, investors remain optimistic, focusing on resilience, digital opportunities, and portfolio improvements despite ongoing risks from competition, high valuations, and macro uncertainty.

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