Asian Family Offices Shifted Capital Toward Private Credit
Investors sought stability and capital preservation as strategic asset allocations evolved throughout 2025 and 2026.
Updated on Oct. 10, 2026 in Investing
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Asian family offices increasingly moved capital from private equity into private credit and secondary markets during 2026. This tactical pivot reflects a broader regional push to prioritize capital preservation and downside protection.
Why it matters
Family offices are adjusting strategies to seek reliable income generation while mitigating risks in an uncertain global market. These shifts suggest a transition toward instruments that offer more flexibility compared to traditional long-term equity holdings.
Southeast Asian family offices allocated 4% of their portfolios to private debt in 2025, compared to 14% for direct private equity and 6% for private equity funds. Global AI investment currently stands at 65% compared to 88% in Southeast Asian offices.
The players
Sun Hung Kai & Co. Limited
This financial institution manages HK$29 billion in alternative assets and has partnered with firms including Clipway and Mubadala Capital.
Farro Capital
This investment firm manages over $3.5 billion in assets for its clients.
LN Sadani
He has advised on and deployed more than $5 billion of private-capital transactions.
Tony Edwards
He is a financial industry expert who provided insights on investment trends at a summit in 2026.
The details
Investors are actively deploying funds into credit vehicles that target data centers, cloud infrastructure, and AI technology. Firms are also utilizing single-asset GP-led secondary transactions, which allow for closer underwriting and evaluation of individual company assets.
Timeline
Southeast Asian offices allocated 4% of portfolios to private debt during 2025.
Tony Edwards discussed investment shifts at a summit on September 24, 2026.
In 2026, 81% of Southeast Asian family offices planned strategic allocation changes.
60% of global family offices plan to alter allocations over the next 12 months.
Market Dynamics
This transition follows the baseline established by the 2025 Southeast Asian private debt allocation levels. The current shift toward secondary markets and credit reflects a departure from the capital-heavy reliance on direct private equity seen in previous cycles.
Retail and institutional investors may observe increased competition for private credit deals as family offices enter these markets. The trend also signals a greater focus on liquidity and capital security for those managing large, multi-generational wealth portfolios.
The takeaway
Family offices are prioritizing defensive strategies by moving into credit-based assets that offer income stability. This approach allows them to maintain exposure to high-growth sectors like AI while protecting their core capital against market volatility.
Further reading
Learn more about the latest trends in global capital allocation at the Investing section.
Source note: This article includes information reported by DealStreetAsia.
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