Private equity firms have accumulated 10-20 years of investment experience in China on average before opening to Southeast Asia. The transaction illustrates the extent to which some regional private equity activity in China has intersected with state-controlled industrial networks. Japan’s Advantage Partners expanded into China in several sectors simultaneously, including in manufacturing, consumer and business services. Strategic corporate investors are already signaling which sectors private equity firms might follow them into in the near future. Regional private equity firms are positioned to contribute much more to Southeast Asia’s growth than private capital alone.