Managers Have Eyed Increased Asia Market Exposure
Private-market investors are reconsidering portfolio diversification as Asian economies show potential for growth.
Updated on Oct. 1, 2026 in Economic Indicators
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Financial experts recently signaled an under-representation of Asian assets within global private-market portfolios. This assessment reflects a growing interest in diversifying away from heavy capital flows that moved into US markets over the last decade.
Why it matters
Investors are seeking lower correlations to their existing portfolios by looking toward Asian economies, which currently represent one-third of global GDP and half of global growth. This shift highlights a strategic move to capture returns in regions at different stages of the economic cycle.
Most limited partners currently allocate 10% to 15% of their portfolios to Asia, despite the region accounting for 50% of global growth. Meanwhile, interest rates in China remain below 2% with current loan-to-value ratios at 70%.
The players
Partners Group
An investment firm that currently maintains over US$20 billion in infrastructure exposure.
The details
Private markets allow general partners to maintain asset control, which helps mitigate the impact of daily market volatility for investors. Strategies for accessing China specifically include onshore, offshore, direct, or secondary investments, while electrification remains a key projected opportunity. These private-market instruments are increasingly expected to converge with public credit markets.
Timeline
China experienced a difficult economic period from 2021 to 2024.
Substantial capital has flowed into US markets over the last 5 to 10 years.
The SuperReturn Asia 2026 conference was held in Singapore in October 2026.
Money Landscape
This development follows a decade where heavy capital flows concentrated in US markets, leading to the current search for broader diversification. It highlights a pivot in strategy as investors assess the different economic cycle stages across global regions.
Individual investors should review their portfolio diversification to understand how exposure to international markets might impact their risk profile. Consult a qualified financial professional to determine if shifts in private-market trends align with your long-term retirement or savings goals.
The takeaway
The move toward Asia reflects a strategic desire to find growth in regions with lower historical correlation to US assets. Investors should monitor how private and public credit markets converge, as these changes may eventually influence the broader availability of diversified investment products.
Further reading
For more on shifts in global allocation, see our Economic Indicators section.
Source note: This article includes information reported by The Business Times.
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