Private equity firms are struggling to find experienced executives to lead portfolio companies across Asia, creating a new constraint on dealmaking as fundraising and available capital rebound, according to a report by Bloomberg.
The 10 largest Asia-focused private equity funds to close in the first half of 2026 raised a combined $45.5bn, more than double the comparable total for all of last year, according to Preqin. But with competition for assets and valuations rising, firms increasingly need experienced managers to drive operational improvements and generate returns.
Some buyout firms are reportedly passing on potential investments because they are concerned they will be unable to recruit suitable CEOs. The challenge is particularly acute in markets such as India, China and Japan, where executives often need deep local knowledge and industry relationships.
Many Asian companies remain family-owned or founder-led, leaving a smaller pool of professional managers with experience running private equity-backed businesses. In China, executives may also prefer established corporations or launching their own companies to joining mid-market PE-backed businesses.
Private equity firms are responding by widening searches across borders, identifying potential CEOs before completing acquisitions and building larger networks of operating executives and industry advisers.
Carlyle, for example, increasingly seeks to identify a potential CEO before approving an investment, while Blackstone has created a network of more than 120 current and former executives from its Asian portfolio companies.
KKR, Bain Capital, EQT and Blackstone have also expanded their operational teams and adviser networks as value creation becomes increasingly dependent on improving businesses rather than relying on leverage and rising markets.
As artificial intelligence, geopolitical tensions and supply-chain disruption add to the demands placed on portfolio company leaders, the competition for proven executives is only intensifying.
