Private markets seen to gain traction among APAC wealth managers

APAC clients to raise allocations to private equity, multi-assets, and renewables.

Private markets are gaining traction among wealth managers and financial advisers in Asia Pacific, with over half already investing in this asset class.

According to Schroders’ Global Investor Insights Survey (GIIS), clients in the region are expected to increase allocations to private equity (51%), multi-private asset solutions (50%), and renewable infrastructure equity (48%) over the near term.

The potential for higher returns compared to public markets is a primary motivator for 64% of wealth managers, whilst 60% value private markets for their diversification benefits through differentiated return drivers.

Despite these benefits, client portfolio allocations to private markets remain modest, with most exposure ranging between 1%-10%.

Semi-liquid or open-ended evergreen funds are the preferred vehicle (56%), followed by listed funds (54%) and closed-ended funds (52%).

However, challenges persist, with limited client understanding (46%), liquidity concerns (41%), and transparency issues (34%) hindering broader adoption.

Wealth transfer is also becoming a priority for 57% of wealth managers in Asia Pacific, including higher prioritization in North America (66%) and similar levels in EMEA (58%).