Managers Have Identified Under-Representation in Asian Assets
Private-market investors are rebalancing portfolios toward Asia to seek growth and diversification.
Updated on Oct. 1, 2026 in Economic Indicators
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Global money managers have flagged that Asian assets remain under-represented in private-market portfolios despite the region contributing half of global growth. The shift reflects a move to diversify capital away from heavy U.S. market concentration.
Why it matters
Operators face a changing capital environment as investment flows move toward Asia, where economies show lower correlation and different cycle stages. This reallocation seeks to hedge against U.S.-centric portfolio exposure.
Most limited partners currently allocate 10 to 15 percent of their portfolios to Asia, despite the region accounting for one-third of global GDP and half of global growth. Partners Group currently holds over US$20 billion in infrastructure exposure within the region.
The players
Partners Group
A global private markets investment manager with over US$20 billion in infrastructure exposure.
The details
Investors are looking to access China, Japan, and India through a mix of offshore, onshore, direct, or secondary investments. While China experienced a difficult period from 2021 to 2024, current interest rates there are below 2 percent with loan-to-value ratios at 70 percent. Private markets allow general partners to maintain asset control and mitigate exposure to daily market volatility as public and private credit markets converge.
Timeline
2021 to 2024 marked a difficult economic period for China.
Capital flows moved heavily into U.S. markets over the last 5 to 10 years.
The SuperReturn Asia 2026 conference was held in Singapore in October 2026.
Market Landscape
This pivot reflects a strategic move to correct the decade-long concentration of capital flows into U.S. markets. It marks a departure from that pattern as managers seek assets in Asian economies that exhibit lower correlation to established Western indices.
Business owners should monitor potential changes in infrastructure and credit availability as public and private markets converge in Asian sectors. Operators should watch specifically for increased interest in electrification projects as a primary vehicle for new regional investment.
The takeaway
The move toward Asian assets suggests a long-term strategy for portfolio diversification as capital flows seek higher growth environments. Operators should track the convergence of public and private credit markets in Japan, India, and China to anticipate future changes in their own financing costs.
Further reading
For broader trends on how macro shifts affect capital movement, see the Economic Indicators section.
Source note: This article includes information reported by The Business Times.
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