Warburg Pincus CEO Jeffrey Perlman has highlighted China as an increasingly attractive market for private equity investments following a period of regulatory and market uncertainty, according to a report by Bloomberg.
The report cites Perlman as saying from Tokyo after a forum in Hong Kong, that China’s stock market has remained largely flat over the past decade despite robust economic growth, creating opportunities to acquire companies at relatively low multiples.
Perlman emphasised that businesses growing at 20% annually can now be purchased for five to six times EBITDA, reflecting a significant valuation reset. The market is recovering from a regulatory crackdown that affected sectors including online education and internet platforms, while geopolitical tensions with the US had previously discouraged foreign investment. A rebound in Hong Kong listings has provided exit routes and liquidity for local private equity and venture funds, improving overall market sentiment.
Warburg Pincus has had a record year of exits in 2025 and reported distributing around 150% more than invested since 2020. Perlman also suggested that Asia broadly, including markets such as Japan and India, offers some of the most cost-effective investment opportunities globally. While the US remains a primary market for capital deployment, he expects investors to increasingly channel marginal funds into the region.
