Key Takeaways
- • Asia-Pacific investors are dramatically accelerating alternative asset allocations as a defensive strategy against geopolitical and macroeconomic uncertainty, with 67% planning to expand alternative investment exposure—the strongest regional appetite globally.
- • Private credit allocation intentions surged to 45% of surveyed investors (up from 37% six months prior), while secondary market allocations jumped to 37% (from 29%), signaling heightened demand for diversification and risk mitigation.
- • Secondary market appetite among APAC investors reached 64% planning to increase exposure, compared to just 42% in December, reflecting a marked shift toward established fund secondaries as liquidity discipline tightens.
- • The survey encompasses 110 global institutional investors managing US$1.9 trillion in assets under management, conducted by Coller Capital (which manages US$40 billion across private equity, credit, and real assets), providing substantial credibility to the data.
- • Growth in private credit fundraising and deployment across APAC is expected to moderate over the next 12–18 months due to persistent macroeconomic uncertainty, despite strong current allocation intentions.
Summary
Asia-Pacific institutional investors are demonstrating heightened urgency in deploying capital toward alternative assets as a portfolio shelter against intensifying geopolitical tensions and market volatility. According to Coller Capital's biannual Global Private Capital Barometer report released in June 2025, APAC investors exhibit the strongest regional appetite for alternatives globally, with 67% planning to expand allocations to the asset class—substantially outpacing global averages.
The shift toward private credit is particularly pronounced. Forty-five percent of surveyed investors intend to increase allocations to private credit over the next 12 months, representing an eight-percentage-point increase from 37% recorded six months earlier. Equally significant, allocation intentions for secondary market investments—encompassing private equity, credit, and real assets purchased from existing fund holders—jumped from 29% to 37% over the same period. Within the APAC region specifically, appetite for secondaries proved even more acute, with 64% of regional investors planning to expand exposure compared to the global baseline of 42% documented in December.
The survey, conducted between February 19 and April 14, 2025, polled 110 global institutional investors collectively managing US$1.9 trillion in assets under management, lending substantial weight to the findings. Coller Capital, which manages US$40 billion across private equity, credit, and alternative fund vehicles, anchors the research with institutional credibility. The data suggests a deliberate portfolio rebalancing toward less liquid, yield-generating assets and existing fund positions as investors navigate persistent policy uncertainty, US-China dynamics, and currency volatility.
However, industry forecasters caution that while allocation intentions remain robust, actual deployment in private credit fundraising and deployment across APAC will likely moderate over the next 12–18 months. Macroeconomic uncertainty, shifting rate regimes, and tightened liquidity discipline are expected to constrain capital flows despite strong investor appetite, indicating a potential disconnect between stated intent and realized capital deployment.
The shift toward private credit is particularly pronounced. Forty-five percent of surveyed investors intend to increase allocations to private credit over the next 12 months, representing an eight-percentage-point increase from 37% recorded six months earlier. Equally significant, allocation intentions for secondary market investments—encompassing private equity, credit, and real assets purchased from existing fund holders—jumped from 29% to 37% over the same period. Within the APAC region specifically, appetite for secondaries proved even more acute, with 64% of regional investors planning to expand exposure compared to the global baseline of 42% documented in December.
The survey, conducted between February 19 and April 14, 2025, polled 110 global institutional investors collectively managing US$1.9 trillion in assets under management, lending substantial weight to the findings. Coller Capital, which manages US$40 billion across private equity, credit, and alternative fund vehicles, anchors the research with institutional credibility. The data suggests a deliberate portfolio rebalancing toward less liquid, yield-generating assets and existing fund positions as investors navigate persistent policy uncertainty, US-China dynamics, and currency volatility.
However, industry forecasters caution that while allocation intentions remain robust, actual deployment in private credit fundraising and deployment across APAC will likely moderate over the next 12–18 months. Macroeconomic uncertainty, shifting rate regimes, and tightened liquidity discipline are expected to constrain capital flows despite strong investor appetite, indicating a potential disconnect between stated intent and realized capital deployment.
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