Asia underweight in private markets despite influence in global economy, say money managers
Three of the five largest countries by GDP (China, Japan and India) are in Asia, which offers private-market opportunities
Despite Asia's significant influence in the global economy, the private markets in the region remain underrepresented, according to money managers. In 2026, George Maltezos, the managing director and head of capital formation for the Asia-Pacific at BlackRock, stated that while Asia accounts for a third of global GDP and roughly half of global growth, most investors only allocate 10 to 15 percent of their portfolios to the region.
Kevin Lu, partner and chairman of Asia at Partners Group, echoed this sentiment, emphasizing the need to find the right way to gain exposure to China, Japan, and India. They highlighted the potential in China, which has faced difficulties from 2021 to 2024 but is now seeing a resurgence due to lower valuations, supportive financing conditions, and an appreciating yuan.
Lu also noted the shift of capital towards Asia, as US equity market returns become increasingly driven by artificial intelligence. Thomas Friedberger, group deputy chief executive officer and co-chief investment officer at Tikehau Capital, pointed out that private markets are crucial for managing exposures, enabling general partners to intervene and make an impact while allowing limited partners to curate longer-term exposures without daily volatility.
Friedberger also highlighted the growing convergence between liquid fixed-income and private credit, as larger issuers can choose from various credit options, potentially leading to a convergence of public and private credit markets. This trend, along with investments in defence, electrification, and infrastructure, offers opportunities for private-market investors.
However, the unique and nuanced nature of Asia's economies, each in different stages of their cycle, necessitates the need for local expertise when investing in the region.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
