This edition of Allocator One’s Annual Alpha Asia Report explains how capital scarcity and conviction-led strategies are reshaping venture across Asia, and why outperformance is accruing to managers who get to the right opportunities before consensus and design liquidity from day one.
Key findings
Asia’s paradox is clear. Venture activity continued, but new fund formation fell to decade lows and concentrated at the top. Asia raised about $79B in 2024 and about $25B in the first half of 2025, so deals flowed while fresh capital tightened. Prices became more disciplined, underwriting improved, and the advantage shifted to managers who could turn marks into money.
Liquidity switched tracks. Secondaries reached about $102–103B globally in the first half of 2025 and buyouts accounted for more than half of APAC deal value in 2024, so cash returned through deals rather than IPOs. Managers who built GP-leds, continuation vehicles, and secondary entry into their playbooks converted TVPI to DPI faster.
Policy became a purchase order. India, Singapore, South Korea, Japan, and Vietnam directed spending to chips, AI compute, data centers, and energy, which created visible co-funders, customers, and acquirers. In Southeast Asia, the digital economy reached $263B GMV, with $89B revenue and $11B profit in 2024, which strengthened buyer visibility across the region.
Specialists set the clearing price. The funds that outperformed were operator-led and sub-$50M to sub-$100M, with ultra-niche focus and local anchors. These managers saw policy and corporate signals earlier, bought better, and recycled capital sooner.
What our coverage shows
Allocator One actively tracks and engages with about 80% of emerging managers in Asia, which provides early visibility on pipelines, pricing, and capacity before rounds crowd. This vantage point shows three consistent patterns:
Access beats headlines. Managers embedded in policy-linked corridors win proprietary entry and underwrite to named acquirers from the start.
Structure is the edge. Funds that plan GP-leds, continuation vehicles, and secondary sales at formation shorten the path from mark to money.
Focus compounds. Tight scopes in applied AI, logistics, industrial software, fintech rails, and climate operations deliver faster iteration and earlier cash outcomes.
Why this matters now
Capital scarcity has raised the bar, but it has also improved entry prices and clarified demand. The next wave of alpha in Asia will be defined by teams that combine early signal, price discipline, and designed liquidity—and by allocators and boards that back them before the crowd arrives.
Read the full report to see how capital flows, policy corridors, and the rise of specialist emerging managers are reshaping Asia’s venture landscape—and why acting early will define the next cycle.
