Asian Family Offices Shifted Capital to Private Credit
Private investment portfolios in Southeast Asia shifted toward credit and secondary markets during 2025.
Updated on Oct. 10, 2026 in Investing
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Asian family offices moved capital from traditional private equity into private credit and secondary assets throughout 2025. This strategic pivot aims to prioritize capital preservation and income generation, according to reporting from Q3 2026.
Why it matters
Investors are seeking greater downside protection and stability by focusing on credit funds that finance essential infrastructure like data centers. This shift reflects a broader global movement toward flexibility as family offices prepare for further allocation changes.
Southeast Asian family offices allocated 4% to private debt in 2025, while 81% of these firms plan further strategy shifts in 2026. This comes as global AI investment reaches 65%, with Southeast Asian offices leading at 88%.
The players
Sun Hung Kai & Co. Limited
A financial institution managing HK$29 billion in alternative assets.
Farro Capital
A wealth management firm overseeing over $3.5 billion in assets.
LN Sadani
An advisor who has deployed and managed over $5 billion in private-capital transactions.
The details
Investors are increasingly utilizing single-asset, GP-led secondary transactions to underwrite individual companies with more precision. By pivoting to credit funds, firms are targeting stable income streams derived from cloud companies, data centers, and critical AI infrastructure. This transition allows for closer scrutiny of asset performance compared to traditional fund structures.
Timeline
2025: Southeast Asian family offices allocated 4% to private debt.
September 24, 2026: Investment strategies were discussed at a summit.
2026: 81% of Southeast Asian family offices planned allocation changes.
Next 12 months: 60% of global family offices plan allocation changes.
Money Landscape
This strategic pivot marks a departure from a decade of heavy reliance on direct private equity toward more liquid or income-focused credit vehicles. It mirrors a wider trend among global family offices currently evaluating their asset compositions to weather market volatility.
For households with significant private holdings, this shift signals a move toward assets prioritizing downside protection and predictable cash flow. Investors should review their portfolio diversification and consult a financial professional to discuss how credit-focused allocations fit into their long-term stability goals.
The takeaway
The trend among sophisticated family offices emphasizes that income generation and capital preservation are currently prized over aggressive equity growth. Readers should audit their own portfolio income sources to ensure they align with their current comfort level for risk and stability.
Further reading
For more on managing private asset exposure, see our coverage of Investing.
Source note: This article includes information reported by DealStreetAsia.
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Is now a good time for individual investors to prioritize private credit over equity investments?
