The alternative investment market in Asia is set to experience explosive growth in the coming years, with private capital assets under management (AUM) on course to reach $6tn by 2025. Private capital is playing an increasing role in asset allocations across Asia-Pacific, as demand to access this fast-growing and diverse region remains robust. Asia-Pacific-focused private capital AUM has already expanded almost sixfold over the past decade, reaching $1.71tn as of September 2020, with $133bn raised during 2020 alone. Combined with the $156bn in Asia-Pacific hedge funds as of Q4 2020, the region is fast approaching the $2tn milestone for alternatives.
Despite this significant growth, navigating Asia-Pacific’s private capital market remains complex. Against a backdrop of political and economic uncertainty, the industry has learned to play the long game and stakeholders have been patient to realize future potential. As the search for global diversification and return-enhancement intensifies, we expect investors to readily support the continued expansion of the alternatives industry in this fast-maturing region.
Read our first Asia-Pacific-focused report to understand the key trends driving the development of the alternatives market. The report also features exclusive commentary from industry experts across the region, who share with us their outlook for Asia-Pacific alternatives after a turbulent year.
A Japanese language version is also available for download.
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