APAC deal activity down by 6% YoY in Q1 2026, reveals GlobalData

Aurojyoti Bose, Lead Analyst at GlobalData, comments: "The decline could be attributed to challenging macroeconomic conditions. Meanwhile, the trend across different deal types remained mixed with sharp contractions in M&A and private equity deals offset growth in venture financing activity, resulting in a modest overall pullback versus Q1 2025."

An analysis of GlobalData's Financial Deals Database reveals that venture financing emerged as the clear bright spot, with deal volume expanding 21% year-on-year (YoY), suggesting improved risk appetite. VC firms continued to place bets on scalable growth themes even as macro uncertainty persisted.

In contrast, the total number of M&A deals announced in the APAC region fell by 26%, highlighting sustained caution among corporates. The decline is consistent with longer decision cycles and ongoing regulatory and geopolitical complexity. Private equity deals volume also dropped by 42%, underlining a more selective underwriting environment.

Geographically, APAC's performance showcased a divergent trend between China and most other markets. China, which is the region's top market by deal volume, registered a massive growth, with about 38% YoY rise in the number of deals. While this helped to mitigate broader regional softness, it did not fully offset the downturn experienced across several other key markets.

For instance, the total number of deals announced in Japan, Australia, South Korea and Singapore fell by around 45%, 18%, 27% and 18%, respectively, during Q1 2026 compared to Q1 2025. Meanwhile, deal activity in India remained almost flat.

Bose concludes: "APAC deal activity in Q1 2026 reflects a cautious dealmaking cycle, with M&A and private equity remaining under pressure. The divergence between China's growth and the widespread softness across other markets also underscores how dynamics can differ across countries and reshape the broader landscape."

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.