From Q3 onward, momentum accelerated across the region, with several markets compressing a substantial Despite a surge in Asia Pacific M&A megadeals, 2025 In addition to a shifting preference on size, private timeframes. China exemplified this pattern, advancing weaken. Perhaps this shouldn't be surprising: it can revised tarifs fading, PE deal teams returned to work after be hard to place big bets when uncertainty is high and, despite only reachingthe halfway point in late September. as we have alreadyseen, uncertainty was the defining vigour to make deals happen. While the uncertain market cash flows, and downside protection. The broader backdrop had made forecasting difficult, it was equally healthcare industry continues to stand out, with in pace through Q3, while Australia and New Zealand of 2025. Reflecting this, the share of total deal value maintained steadier execution into year end. deploy funds was undiminished. The same investment to 133 deals in 2025. Deal value also increased to US$19.6B, underscoring sustained conviction despite Not only did deployment increase into year-end, a more selective investment climate. Within the sector, story; excludingJapan, where deal activity reached an Creating a back-weighted year, but exits showed signs of all-time high, the dearth of large deals becomes even more striking. Outside of Japan, only four deals exceeded oriented segments, with healthcare service providers haif, exit markets recovered in the second half of 2025, In 2025, deal activity across Asia Pacific was meaningfully US$2B in 2025, down from eight a year earlier. Indeed, back weighted, with approximately 61% of deal value 65% of total 2025 exit value. As execution conditions concentrated in the second half of the year. On average, deals in Asia Pacific in 2025, allof which were transactions preference for utilisation-driven, non-discretionary improved and valuation expectations realigned, long-held transacting, facilitating long-awaited liquidity events for to hit 50%. By contrast, going from 50%-75% of deal sponsors and investors. Seeing portfolio assets trade logistics, where deal count rose to 42 in 2025, a 14% large deals. Having fewer full-blown PE-backed sell-side value took an average of just 60 days. India was the only market to reach 50% of total deal value by mid-year, processes has limited the availability of larger deals.l averages, while total deal value expanded to US$7.8B. current market, the prospect of becoming a target fora markets experiencing a much slower start, deployment large, headline-attracting deals. There may also be an Even within secular growth themes such as Al, tariffshifts. Smaller companies are more likely to have focus, making them appear less exposed to global trade related infrastructure. Overall,these trends highlight volatility. Finally, smaller bolt-on transactions, supporting a clear shift towards defensive, asset-backed, and cash risky. They involve a lower equity check, are in an industry the GP has already assessed and invested in, and they support the existing investment, either as a defensive Against this backdrop, some large GPs are leveraging size. One global GP example is EQT's BPEA EQT Mid- Market Growth Fund (US$1.6B launched in 2024) and (launched in 2022 with a target size of Us$1.5B). whencumultiv dealvalue,based onpubliclydisclosed transactionnnouncement datereached5%,50%75% and