BUSINESS

China Private Equity Enters Consolidation Phase as Fundraising Crunch Persists

Published: Apr. 21, 2026 10:54 p.m. GMT+8

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Bain survey data shows a significant improvement in market sentiment for 2025. Photo: VCG

China’s private equity market recorded its second consecutive year of transaction growth in 2025, even as severe fundraising bottlenecks signal the end of the industry’s rapid expansion phase.

The findings, detailed in Bain & Co.’s 2026 China private equity market report released on Tuesday, highlight an industry shifting into a consolidation period driven by macroeconomic stabilization.

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China’s PE market had 2nd year of transaction growth in 2025, but fundraising fell; USD funds raised ~$4B, down 2% YoY.
Shift to buyouts (33% from 9% in 2022); top 10 GPs took 80% fundraising; LP co-investments hit 78%.
Median EV/EBITDA rose to 12.1 (2023-2025) from 11.9; 20% IRR needs 12% annual EBITDA growth vs 5% a decade ago.

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Who’s Who

Bain & Company: Bain & Company released its 2026 China Private Equity Market Report, highlighting two years of transaction growth amid fundraising bottlenecks and industry consolidation. Global partners Chen Jie and Zhou Hao discussed valuation recovery (median EV/EBITDA at 12.1), LP trends, exit pressures, and a shift to buyouts.

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