The 2025 iCapital Asia Advisor Survey highlights a pivotal shift among wealth managers in Asia’s financial hubs, particularly Singapore and Hong Kong, where interest in alternative investments is rising rapidly. Based on responses from 149 advisors overseeing at least $400 million in AUM, the findings reflect a region moving decisively beyond the “why” of alternatives to the “how”, with growing client demand outpacing the operational and technological readiness of many firms.
Client appetite for private market assets has grown substantially: 38% of advisors in Asia report increased interest, rising to 100% at firms managing more than $3 billion. Smaller firms and private banks are driving this allocation momentum, planning increases of 8% and 22%, respectively. It is clear that alternatives are no longer viewed solely as niche strategies but as central tools for diversification, income, and client engagement.
Client demand for alternatives is rising—and accelerating at the top
Compared to two years ago, has client interest in alternative investments…?
Client interest in alternatives is rising—38% of advisors have seen an increase, jumping to 100% among firms over $3B and 64% at private banks. The trend underscores growing demand in scaled, sophisticated segments and a need for advisor support and access.
“Client investment objectives are the most influential factors because long-term growth, income generation or capital preservation are the factors that influence investment choices.”
— Advisor Perspective
In contrast to global preferences favoring private equity, advisors in Asia show a strong tilt towards private credit, prioritizing yield and liquidity. Hedge funds and private equity remain important, but the regional focus is on income-oriented, risk-aware strategies. At the same time, interest in innovative exposures is growing, particularly artificial intelligence, fractional ownership, and sustainability themes such as the blue economy and clean energy.
This year’s survey also found that evergreen strategies are gaining traction. Most advisors expect client allocations to rise to 11–15% within two years, with professional investment advisors and family offices often already exceeding that threshold. These vehicles offer long-term exposure and liquidity clients increasingly value.
Advisor interest in evergreen strategies continues to grow—especially among professional investment advisors and family offices
What do you anticipate will be your client′s average exposure to evergreen strategies in the next two years?
In line with global trends, most advisors in Asia expect client exposure to evergreen funds to rise—often to 11–15% or more. Allocations above 15% are most common among individual financial advisors and single-family offices, pointing to growing demand for access, liquidity, and long-term exposure.
Nevertheless, adoption is hindered by structural inefficiencies. Client reporting is the top barrier to broader implementation of the asset class, surpassing fees and complexity. This operational consideration reiterates the aforementioned shift from advisors asking “why” to “how”. Advisors cite friction in documentation, regulatory processes, and risk assessment. Many firms struggle to integrate private market assets into portfolios due to fragmented systems and limited access to high-quality products.
Unsurprisingly, education remains a critical dependency. While foundational knowledge around fund structures is still in demand, advisors are increasingly seeking practical, technology-focused content that supports implementation and compliance.
To keep pace with client expectations, the survey found that firms in Asia must modernize. Respondents called for better data integration, clearer reporting, and tools to streamline onboarding and risk analysis. It is clear that those who invest in scalable, tech-enabled infrastructure will be best positioned to lead in a market where alternatives are becoming not just more common but also core components of client portfolios.
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