Global markets have entered a phase of heightened volatility in 2025 after U.S. President Donald Trump unveiled a fresh round of tariff hikes that threaten to spark a global trade war. Following the announcement of the “Liberation Day” tariffs in early April, markets reacted sharply, with major stock indexes, including the Hang Seng Index, plunging to multi-year lows in the days following.
The tariff shock and ensuing market turbulence have reignited fears of global trade fragmentation, persistent inflation and renewed supply chain disruptions. In response, ultra-high net worth individuals (UHNWIs) across Asia are reevaluating their investment strategies, looking for greater diversification to help mitigate volatility, weather-proof their portfolios and secure long-term objectives.
Incidentally, private markets and alternative investments have increasingly gained the interest of UHNWIs looking beyond traditional investment products to grow alpha while building a more diversified portfolio. The recent market volatility has heightened their appeal for these investors, as private markets, in particular, are less sensitive to macro factors.
“We are seeing growing interest from our clients in private markets and alternative solutions as part of a broader portfolio diversification strategy,” says Raymond Ang, Global Head of Private Bank and Affluent Clients, and Head, Wealth and Retail Banking, Greater China and North Asia, Standard Chartered.
Unlocking New Opportunities in Private Markets
Private markets encompass a broad universe, from private equity and private credit to real estate and infrastructure. While each strategy is distinct, they all involve direct investments into privately held, high-potential companies or assets, often with a view to add value through strategic or operational improvements.
Private equity remains the most established segment, accounting for over 60% of global private markets assets under management. According to McKinsey, these assets were valued at approximately US$13.1 trillion as of June 2023, having grown at an annual rate of 20% since 2018.
Private markets have historically been dominated by institutional capital. However, there is growing interest from wealthy investors, not only in the West but also increasingly in Asia, looking to increase their allocations in this space. Several global wealth managers are now expanding into Asia to tap the region’s rapid wealth accumulation. At the same time, Asian families are becoming more sophisticated and adopting endowment-style investment approaches, which emphasize long-term diversification.
Higher return potential is one key draw. Private equity and private credit have consistently outperformed their public market counterparts. This outperformance is often attributed to a liquidity premium, where investors are rewarded for committing capital for longer periods, and to the fact that many high-growth companies now stay private for longer.
Diversification is another important benefit. There are nearly nine times more private companies than public ones globally with annual revenues above US$100 million. These private firms offer access to a broader universe of opportunities that are less sensitive to macroeconomic factors and news flow that typically affect public market investments.
“More wealthy families in Asia are drawn to private markets not only for their potential for superior returns, but also their access to a wider range of opportunities that are less exposed to day-to-day market volatility,” says Nicholas Cheng, Head of Private Markets Group, Private Banking, Standard Chartered.
As such, private equity managers can create value by investing capital directly into these companies. Private markets also enable early exposure to promising, innovative companies before they go public or are acquired.
Expanding Access Through Innovation
Traditionally, UHNW investors have accessed private markets either through direct deals or closed-end private equity funds. However, the landscape is evolving. New structures are lowering entry barriers. At the same time, innovation is enhancing how co-investments are sourced and managed.
Standard Chartered Global Private Bank is helping clients take advantage of this evolution. In February this year, it launched its Private Markets Co-Investment Club (CIC), a platform that offers UHNW clients access to curated, institutional-grade co-investment opportunities in private markets. The investment strategies currently cover global buyouts and could expand to include late-stage venture capital, thematic real estate, targeted private debt and specialized niche sectors.
Co-investments offer several benefits, including more control over deal selection, enhanced transparency and lower fees.
“We are disrupting the industry with the CIC to offer our clients differentiated access to high-quality direct investment opportunities that are otherwise not readily available,” says Ang. “The CIC provides a structured and programmatic approach to institutional-grade, single-asset co-investment deals.”
Expanding the Alternatives Menu
At the same time, alternative assets are becoming increasingly mainstream. While hedge funds and structured products remain part of the mix, investors are now exploring more unconventional areas, including sports, media and entertainment. Standard Chartered’s launch of a European private credit fund, along with its more recent sports-focused fund, is a direct response to growing demand for alternative investments from its UHNW clients.
Take the booming market for sports media rights, for instance. Broadcasting rights for major leagues such as football and cricket have reached record highs, driven by digital consumption and global fan engagement. Private equity firms are acquiring stakes in franchises, betting on their long-term monetization potential.
“As team valuations continue to rise, fewer individuals have enough wealth to purchase a team. This opens up a golden opportunity for private wealth today, as clients could not access these franchises in the past,” Ang says.
Standard Chartered recently launched a new alternatives fund in the sports, media and entertainment space, responding to sophisticated investors’ interest in this growing segment.
“As clients increasingly look to incorporate alternatives into their portfolios to achieve greater diversity and long-term growth, the new fund offers a professionally managed solution for our clients to access high-quality private market opportunities with institutional grade risk-management and oversight,” says Sumeet Bhambri, Global Head, Advisory and Management Investments at Standard Chartered’s Wealth Solutions.
Although these assets are complex and often illiquid, they offer exposure to differentiated value drivers, such as intellectual property, brand equity and recurring income streams, making them attractive to select investors.
Navigating Complexity With Expert Guidance
As allocations to private and alternative assets increase, so does complexity. UHNW portfolios often span multiple jurisdictions and require nuanced structuring, legal oversight and risk management.
Standard Chartered Global Private Bank offers a comprehensive suite of discretionary and advisory solutions to meet these needs. From closed-end funds to evergreen structures and co-investments, clients can tailor their exposure based on liquidity preferences and risk tolerance.
Education remains a key focus. The bank supports clients through workshops, market insights and investment briefings, helping them better understand emerging trends, exit timelines and manager performance.
This support is especially critical in Asia, where many family offices are still in the early stages of adopting private market strategies, although a shift is underway. According to joint research from Raffles Family Office and Deloitte, family offices in Asia-Pacific are allocating an average of 12% to direct investments and only 4% to funds.
In an increasingly volatile and unpredictable global environment, preserving capital and building long-term resilience have become critical for Asia’s UHNW families. Private markets and alternative investments are viable options to meet these evolving goals, especially if clients have wealth managers that can guide them with knowledge and advice, as well as provide them with access to suitable partners and opportunities.
