EQT's Salata Eyes Asian Private Equity After 30 Years

Jean Eric Salata, Chairman of EQT AB, detailed his three-decade tenure in Asian private equity during a recent interview on Bloomberg's Masters in Business podcast. The discussion, recorded on June 12, 2026, focused on the evolution of cross-border investment strategies and the cultural nuances vital for success in markets like Japan and Hong Kong. Salata's firm manages assets exceeding 100 billion euros globally.

Context — why Asian private equity matters now

Global private equity dry powder reached a record $1.7 trillion in Q1 2026, with a significant allocation targeting Asian growth narratives. This capital overhang coincides with persistent macroeconomic uncertainty, as the US 10-year Treasury yield hovers near 4.3% and the MSCI Asia ex-Japan index is up 5.8% year-to-date. Asia's appeal stems from its demographic tailwinds and a series of market liberalizations, notably in India and Vietnam, which have opened new sectors to foreign direct investment.

The catalyst for renewed institutional focus is a valuation reset. Public market volatility has created a bid-ask spread dislocation, allowing private equity firms to acquire assets at lower entry multiples compared to 2021 peaks. Salata’s extensive experience, which includes founding Baring Private Equity Asia before its acquisition by EQT in 2022, provides a historical lens on these cycles. His commentary arrives as limited partners aggressively seek diversification beyond saturated North American and European buyout markets.

Data — what the numbers show

Asian private equity deal volume totaled $98 billion in 2025, a 15% decrease from the previous year's $115 billion, according to industry data. However, the average deal size increased by 8% to $450 million, indicating a focus on larger, more established assets. Venture capital investments in Southeast Asia fell more sharply, dropping 30% to $12.5 billion from 2024’s $17.9 billion.

Performance dispersion is wide. Top-quartile Asia-focused buyout funds delivered a net IRR of 22% over the past decade, significantly outperforming the region’s public market benchmark. In contrast, median fund performance trailed, posting a 12% net IRR. Japan-specific transactions have been a bright spot, with deal count rising 20% year-over-year as corporate governance reforms pressure conglomerates to divest non-core subsidiaries.

Analysis — what it means for markets and sectors

Salata’s emphasis on deep local partnerships signals a competitive edge for firms with entrenched on-the-ground teams, potentially benefiting large platforms like KKR and Blackstone that have expanded Asian operations. The technology and healthcare sectors are primary beneficiaries, attracting over 40% of all regional private capital. Second-order effects include increased demand for mid-market investment banking services from firms like Lazard and Evercore.

A key risk is geopolitical friction, which could disrupt cross-border capital flows and supply chains integral to many portfolio companies. Currency volatility remains a persistent headwind for USD-denominated funds repatriating returns. Current institutional positioning shows a net long bias toward Indian infrastructure and Japanese corporate carve-outs, with secondary market volume for Asian PE stakes rising 25% in the last quarter.

Outlook — what to watch next

The next significant catalyst is China’s Third Plenum in July 2026, where potential policy shifts could clarify the investment landscape for foreign capital. Earnings reports from listed Asian asset managers like Ping An and CITIC Securities in August will provide tangible data on fee revenue and assets under management growth. Markets will monitor Japan’s TOPIX index, which faces a technical resistance test at the 2,900 level.

A break above that level, coupled with sustained yen strength towards 140 per dollar, could accelerate inbound M&A activity. Conversely, a deterioration in US-China trade relations would likely freeze deal-making momentum. The window for attractive entry multiples may narrow if public equity markets continue their ascent, compressing acquisition opportunities.

Frequently Asked Questions

What is Jean Eric Salata's background in private equity?

Jean Eric Salata founded Baring Private Equity Asia in 1997 and built it into one of the region's largest independent firms before orchestrating its sale to Sweden's EQT in a multi-billion dollar transaction finalized in 2022. His career began in the early 1990s, focusing on cross-border investments between Hong Kong, Japan, and Southeast Asia, providing him with a unique perspective on multiple economic cycles and regulatory regimes.

How does Asian private equity performance compare to the US?

Top-performing Asian private equity funds have historically rivaled US returns, with top-quartile net IRRs often exceeding 20% over a decade. However, the median Asian fund underperforms its US counterpart by approximately 300 basis points annually, reflecting greater market fragmentation and execution complexity. The risk-adjusted return profile differs due to currency factors and varying stages of economic development across the region's markets.

Which sectors in Asia offer the best potential for private equity?

Technology, healthcare, and financial services are the most favored sectors, representing over half of all deal volume. Specific growth sub-sectors include Indian fintech, Indonesian digital infrastructure, and Korean biotechnology. Japan’s ongoing corporate governance reform drive has unlocked value in industrial manufacturing and consumer goods divisions being spun off from large conglomerates.

Bottom Line

Salata’s three-decade track record underscores Asia's enduring appeal for patient capital seeking demographic growth.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.