Money Managers Shifted Focus Toward Asian Assets
Investors identified an under-representation of Asia in private-market portfolios relative to the region's global growth.
Updated on Oct. 1, 2026 in Economic Indicators
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Financial experts have noted a need to increase private-market allocations in Asia as global portfolios search for diversification. While Asia generates half of global growth and holds one-third of global GDP, current allocations typically remain between 10 and 15 percent.
Why it matters
Capital flows have been heavily concentrated in US markets over the past decade, driving a push for diversification into Asian economies. These markets operate at different economic cycles and offer lower correlation to Western performance.
Asian economies contribute one-third of global GDP and one-half of global growth. Currently, limited partners allocate 10 to 15 percent of their total portfolios to the region, though specific capital shift timelines remain unknown.
The players
Partners Group
This global private markets firm currently manages over US$20 billion in infrastructure exposure.
The details
Investors are currently exploring China, Japan, and India as primary opportunities to balance infrastructure and credit exposure. Despite a difficult economic period for China from 2021 to 2024, strategies such as onshore or secondary investments allow partners to maintain control over assets while mitigating volatility.
Timeline
Economic challenges impacted China from 2021 to 2024.
Capital flows surged into US markets over the last 5 to 10 years.
The SuperReturn Asia 2026 conference took place in October 2026.
Macro View
This move toward Asian private markets follows the findings presented at the SuperReturn Asia 2026 conference. The current pivot marks a shift away from the heavy capital concentration in US markets seen in historical economic cycles.
As credit markets converge, individual investors with exposure to private-market funds may see shifts in portfolio composition toward Asian infrastructure and credit assets. These changes reflect an effort to improve risk management through geographical diversification.
The takeaway
Diversification into Asia offers investors a way to tap into a region that currently produces half of all global growth. This strategic pivot aims to balance portfolio risks that have become increasingly tied to US market cycles over the last decade.
Further reading
For more information on market trends, visit the Economic Indicators section.
Source note: This article includes information reported by The Business Times.
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