The Asian private equity market dropped in 2016, recording the second consecutive annual decrease in the number of funds closed and the total capital raised, according to a study by Preqin.

Findings from Preqin’s 2016 Fundraising Update revealed that 148 Asia-focused private equity funds raised a total of $40bn in 2016, compared to 214 funds that raised $51bn a year ago and 226 funds that raised $65bn in 2014.

The region’s venture capital fundraising was almost flat compared to previous years, while buyout fundraising and growth fundraising slumped 21% and 58%, respectively.

Asia-focused funds constituted only 7% of total buyout fundraising in 2016, which is its lowest share since 2012. Moreover, the region’s total value of buyout-backed deals dropped 55% year-on-year in 2016.

The study further unveiled that Asia-based investors made up for only 13% of the global private equity investor at the start of 2017. The regions that investors believed had the best opportunities in 2017 were emerging Asia, China and India.

The bright spot was that Asia continued to vie with North America as the most active venture capital market. China, India and Japan were found to be among the top five countries with the highest number of active fund managers, with China especially found to be contributing to increasing number of global venture capital deals in recent years.