iCapital: Asian Advisors' Top Alts Target is Private Credit
Yield is king in Asia, with the region’s advisors preferring private credit for their alternatives allocations, according to a report by iCapital.
More than two-thirds (71 percent) of advisors chose private credit as the type of alternative investments they are most interested in allocating towards on behalf of clients, according to the 2025 iCapital Asia Advisor Survey.
Hedge fund and private equity were close behind at 70 percent and 68 percent, respectively, followed by real estate (39 percent), venture capital (27 percent) and other real assets (16 percent). The types of exposure seeing the most demand were artificial intelligence real assets (60 percent) and AI private equity or hedge funds (52 percent).
Stable Allocation
Overall, just 5 percent of respondents were seeking to increase allocations towards alternative investments and 91 percent said they would maintain levels. Demand was higher amongst smaller players with an 8 percent rise among firms with under $400 million and 22 percent increase at private banks while there was a levelling off at the largest firms.
The top reason to use alternatives was access to sophisticated or unique investments (18 percent), while the top barrier to further adoption was client reporting (25 percent).
The survey was based on 603 respondents across nine countries in the US, Europe, Middle East and Asia, including 149 respondents in Singapore and Hong Kong.
