China attracts Middle Eastern and US private-equity funds

Private-equity investments in China may be set for a recovery, thanks to more capital coming from the Middle East and new strategies from US funds, according to a report from Bain & Company. The total deal value in the Asia-Pacific region rose by 11 percent to $176 billion in 2024. Sebastien Lamy, a co-leader at Bain, noted that there is a positive momentum for China's market. He believes this could lead to a brighter outlook for the country in the years 2025 and 2026. The report indicates that capital from the Middle East is starting to fill gaps left by other investors. Marc Antaki, from Mubadala Investment, shared that his firm has been investing in China since 2015, even when many Western firms exited the market. He emphasized that his firm has increased its investments across Asia. Additionally, US funds are changing their strategies to focus on less risky investments in China. This includes a shift towards cross-border deals, which are seen as safer options in the current environment.