Asia investors (Limited Partners or LPs) are planning to increase private credit and secondaries allocations amid growing macro-economic uncertainty, reflecting a shift toward more defensive investment strategies, according to Coller Capital’s latest Global Private Capital Barometer.
Among other regions, Asia Pacific LPs showed the strongest interest in alternative investments, with 67% planning to expand allocations to the asset class overall.
Appetite for secondaries saw a marked increase: 64% of LPs in the region intend to ramp up their exposure to the asset class, up from 42% six months ago.
Meanwhile, private credit remained attractive for Asia-Pacific investors, with 50% planning to increase investments.
The 42nd edition of Global Private Capital Barometer gathered the views of 110 private capital investors from around the world. In total, the investors surveyed oversee a combined $2trn in assets under management.
Geopolitical instability and trade tensions have created a more uncertain backdrop for investing. Amid an increasingly complex global landscape, 44% of LPs worldwide reported that their institutions have a heightened focus on geopolitical risk as a key factor in portfolio construction.
This is most pronounced among Asia Pacific investors surveyed, with 64% placing greater emphasis on geopolitical risk. This aligns with the finding that eight in 10 (82%) of Asia Pacific LPs said geopolitical factors represent a significant risk to returns over the next two to three years.
Jeremy Coller, chief investment officer and managing partner of Coller Capital, commented: “New challenges call for new strategies, so as the world continues to confront increased geopolitical and economic uncertainty, it’s no surprise that investors are exploring alternative options to deliver returns.”
Peter Kim partner, head of Asia and RMB of Coller Capital, added: “Despite an uncertain geopolitical landscape, Asia Pacific investors are showing growing conviction in private markets, increasing their allocations to secondaries and private credit. They are also actively exploring emerging opportunities such as evergreen structures, which reflects their adaptability and long-term optimism in the region.”
Among those surveyed, 42% of Asia Pacific LPs plan to either start evaluating or investing in evergreen funds focused on private equity, while 58% intend to do the same for those targeting private credit.
Founded in 1990, Coller provides investment and liquidity services to private market investors worldwide, and currently manages $40bn in private equity, private credit, and other private market vehicles.
