State Street: "Asia-Pacific Private Markets See Increased Individual Investor Participation"

Annual Global Private Markets Survey Report
85% of Asset Managers Plan to Expand Retail Investment Strategies

Despite a slowdown in the fundraising environment, demand in the private market is expected to remain robust, with Asia-Pacific investors demonstrating a strong willingness to actively expand their asset allocations.

Global custodian bank State Street has released its annual Global Private Markets Survey Report containing these findings. The survey was conducted with 480 senior executives from asset management firms, asset owner institutions, and asset management intermediaries worldwide.

According to the report, 84% of respondents are either already offering or planning to offer private market solutions specialized for individual investors. Additionally, 85% of Asia-Pacific respondents stated that they are already providing or planning to launch products for individual investors. Approximately six out of ten institutions in the Asia-Pacific region expect that at least half of their fundraising over the next three years will be driven by retail-focused strategies.

Institutional investors also showed a strong willingness to invest in the private market. Only 7% of global respondents said they plan to reduce their private market exposure over the next two years, while 50% plan to increase their asset allocations and 43% plan to maintain current levels. Among Asia-Pacific institutional investors, the intention to expand private market allocations (52%) was slightly higher than the global average (50%). Notably, they exhibited a more positive view toward private credit strategies, with 49% planning to increase exposure—significantly higher than the global average of 39%.

Eight out of ten institutions cited liquidity management as a core challenge. As companies scale up to address a more diverse client base, demands for regulatory compliance, reporting, and investor services are simultaneously increasing.

Eric Cheung, Senior Managing Director of State Street Global Alternatives, stated, "The results of this survey indicate that asset management firms and asset owner institutions are not only targeting new client segments, but that asset owners such as pension funds and insurance companies also plan to leverage these new structures for tactical asset allocation and more rapid asset deployment. This clearly demonstrates that the private markets sector is undergoing a structural transformation, and that the retail segment will become a key driver of industry growth."

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