Private investments still appeal to Asians despite measured optimism

Geopolitics and geoeconomics were the top considerations influencing investors' outlook.

Private investments are still attracting interest from Asian investors, though most are expressing measured optimism about it for the next 12 months, according to a survey by Cambridge Associates.

Conducted in Q2 2025 amongst 35 institutional investors, private clients, and family offices in Singapore and Hong Kong, the poll found that 40% of respondents intend to increase allocation to private investments over the next 12 months, whilst the remaining 60% intend to maintain their current exposure.

When asked about their optimism on the private investment outlook over the next 12 months, 60% of investors reported a neutral stance, 31% expressed a positive sentiment, and 9% indicated a negative sentiment.

From the poll, geopolitics and geoeconomics were the top considerations influencing investors' outlook, followed closely by exits and distributions.

Over longer periods, private equity and venture capital have delivered stronger returns than public markets.

Notably, private credit has posted better performance than private equity and venture capital in recent years, benefiting from a higher interest rate environment.

This recent outperformance is also reflected in the poll, with private credit ranking amongst the top three strategies to which clients intend to increase their allocations over the next 12 months.

Alongside private credit, co-investments and growth equity also emerged as favoured strategies for additional capital commitments in the year ahead.