Private capital activity is gaining momentum across APAC and the Middle East, as improving deal pipelines and renewed LP interest drive optimism across the industry.

A new report from Heidrick & Struggles shows that 73% of private capital professionals expect market opportunities to improve over the next 18 months, up from 60% a year earlier, highlighting a strengthening outlook across both regions.

The recovery is underpinned by economic resilience and higher projected growth in APAC compared with the US and Europe, reinforcing the region’s position as a key destination for global capital deployment.

At the same time, activity in the Middle East is accelerating, with global private equity firms expanding their presence and increasingly positioning senior leadership in Riyadh and Abu Dhabi, alongside the region’s traditional hub in Dubai.

Hong Kong and Singapore continue to serve as critical centres for APAC private capital, with executives leading regional mandates and driving cross-border investment strategies.

“Hong Kong and Singapore continue to serve as key headquarters for APAC private capital, with executives leading deals across the region rather than just their home markets,” said Guillaume Lévi, Partner at Heidrick & Struggles.

As deal activity rebounds, competition for senior talent is intensifying, particularly among firms with active deployment pipelines. The report highlights a clear upward trend in compensation, with 68% of respondents reporting higher base salaries and 66% receiving increased bonuses in 2025.

Looking ahead, 78% expect base compensation to continue rising over the next 18 months, signalling sustained demand for experienced professionals.

The strongest gains are concentrated at the top of organisations. Managing partners earned an average of $750,000 in total cash compensation in 2025, up from $624,000 in 2024.

In Hong Kong and Singapore, average compensation reached $891,000, representing a 14% increase year-on-year, driven primarily by stronger bonus payouts.

Beyond cash compensation, long-term incentives remain a key component of remuneration, with average carry allocations across funds in these hubs reaching $5.487m.

“The upward trend in compensation reflects not only strong fund performance across APAC and the Middle East but also intensified competition for senior talent,” said Shadi El Farr, Regional Managing Partner at Heidrick & Struggles.

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