APAC deal activity falls 11% in first seven months amid PE and M&A retreat
Deal-making across Asia-Pacific slowed sharply in the first seven months of 2026, with the combined number of M&A, private equity and venture capital transactions falling 11% year-on-year, according to GlobalData.
Deal-making in the Asia-Pacific region dipped by 11% year-on-year during the first seven months of 2026, according to GlobalData. The decline signifies a more cautious investment climate, driven by tighter financing conditions, uncertainty over earnings, and concerns regarding exit prospects. Aurojyoti Bose, a lead analyst at GlobalData, attributes this contraction to a broader shift towards enhanced deal discipline.
Both M&A and private equity activities experienced notable slowdowns, with M&A transactions decreasing by 22% and private equity deal volumes falling by 25% compared to the previous year. In contrast, venture capital saw a modest 3% increase over the same period. This divergence in performance highlights a shift in how risk capital is being deployed, with corporate buyers delaying acquisitions and private equity firms facing intensified due diligence processes.
While China and India showcased relatively stronger deal activity, with China seeing a 6% increase and India a 1% growth, major economies like Japan recorded substantial declines, with transaction volumes dropping by 38%. Other APAC markets such as Australia, South Korea, and Singapore also experienced double-digit declines. The overall data suggests a more selective approach across APAC markets as deal-makers navigate a more uncertain market environment.
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