Key Takeaways
- • JPMorgan Asset Management's private wealth alternative assets in Asia-Pacific surged 40% over the past 12 months, according to regional CEO Dan Watkins, reflecting strong demand from high-net-worth and ultra-high-net-worth clients.
- • Alternative investments account for 60% of single-family office portfolios, surpassing traditional assets (41%) for the first time, according to BNY Wealth.
- • Citi's 2026 survey of 351 family offices ranked inflation as their top concern, followed by interest rates, financial system stability and market volatility; hedge funds drew the strongest recent interest among qualified clients.
- • Net inflows into open-ended infrastructure funds rose 30% year on year in the 12 months through Q1 2026, per PitchBook data cited by UBS, driven by AI, electrification and energy security themes.
- • Industry leaders caution that improved access does not equal liquidity, and that concentration risk and valuation lags can mask true exposure.
Summary
The world's wealthiest investors are increasingly moving beyond stocks and bonds, directing capital into hedge funds, private equity and infrastructure as market volatility and persistent inflation prompt diversification. Industry participants describe a sharp rise in planned allocations to alternatives among family offices, a trend that has been accelerated by concentrated equity markets, geopolitical uncertainty and doubts that traditional portfolios will protect against downturns as they once did.
JPMorgan Asset Management's private wealth alternative assets in Asia-Pacific grew 40% over the past 12 months, according to Dan Watkins, the firm's regional chief executive, who cited strong appetite among high-net-worth and ultra-high-net-worth clients at a media summit in Singapore. John Woods, chief investment officer for Asia at Lombard Odier, said he is seeing a sharp increase in planned allocations to alternatives among the family offices his firm works with. BNY Wealth reports that alternatives now make up 60% of single-family office portfolios, compared with 41% for traditional assets.
Hedge funds are emerging as a preferred option for wealthy investors seeking protection against market swings, according to Olaolu Aganga, head of portfolio construction and analytics at Citi Wealth, who said they have attracted the strongest recent interest among qualified clients. Citi's 2026 survey of 351 family offices found inflation to be the leading concern, followed by interest rates, financial system stability and market volatility. Private credit is also attracting interest for its contractual income streams. However, the same survey showed public equities recorded the strongest net increase in allocations, and Woods said the shift is "not a wholesale rotation away from public markets."
Infrastructure has become another major beneficiary, driven by AI-related demand for data centers, electricity networks and digital connectivity. Thomas Roland Guyot, head of private markets investment specialists for Southeast Asia at UBS Unified Global Alternatives, said investors are targeting assets tied to AI, electrification and energy security. Net inflows into open-ended infrastructure funds rose 30% year on year in the 12 months through Q1 2026, according to PitchBook data cited by UBS. Private equity remains a core holding, though investors are becoming more selective, favoring direct investments, co-investments and secondary purchases of fund stakes, which Woods said can offer greater control or discounted entry. Evergreen and semi-liquid funds have lowered minimum investment thresholds and eased administrative hurdles.
The article also highlights risks. Private investments can lock up capital for years, valuations may lag deteriorating conditions, and semi-liquid funds can restrict withdrawals when redemptions surge. Watkins said, "Improved access does not equal liquidity." Aganga warned that manager performance can vary significantly, and Guyot cautioned that data-center exposure spread across real estate, infrastructure and private equity may still reflect a single AI investment cycle. Woods noted that much of the new investment is funded by fresh capital and excess cash rather than large-scale sales of stocks and bonds.
JPMorgan Asset Management's private wealth alternative assets in Asia-Pacific grew 40% over the past 12 months, according to Dan Watkins, the firm's regional chief executive, who cited strong appetite among high-net-worth and ultra-high-net-worth clients at a media summit in Singapore. John Woods, chief investment officer for Asia at Lombard Odier, said he is seeing a sharp increase in planned allocations to alternatives among the family offices his firm works with. BNY Wealth reports that alternatives now make up 60% of single-family office portfolios, compared with 41% for traditional assets.
Hedge funds are emerging as a preferred option for wealthy investors seeking protection against market swings, according to Olaolu Aganga, head of portfolio construction and analytics at Citi Wealth, who said they have attracted the strongest recent interest among qualified clients. Citi's 2026 survey of 351 family offices found inflation to be the leading concern, followed by interest rates, financial system stability and market volatility. Private credit is also attracting interest for its contractual income streams. However, the same survey showed public equities recorded the strongest net increase in allocations, and Woods said the shift is "not a wholesale rotation away from public markets."
Infrastructure has become another major beneficiary, driven by AI-related demand for data centers, electricity networks and digital connectivity. Thomas Roland Guyot, head of private markets investment specialists for Southeast Asia at UBS Unified Global Alternatives, said investors are targeting assets tied to AI, electrification and energy security. Net inflows into open-ended infrastructure funds rose 30% year on year in the 12 months through Q1 2026, according to PitchBook data cited by UBS. Private equity remains a core holding, though investors are becoming more selective, favoring direct investments, co-investments and secondary purchases of fund stakes, which Woods said can offer greater control or discounted entry. Evergreen and semi-liquid funds have lowered minimum investment thresholds and eased administrative hurdles.
The article also highlights risks. Private investments can lock up capital for years, valuations may lag deteriorating conditions, and semi-liquid funds can restrict withdrawals when redemptions surge. Watkins said, "Improved access does not equal liquidity." Aganga warned that manager performance can vary significantly, and Guyot cautioned that data-center exposure spread across real estate, infrastructure and private equity may still reflect a single AI investment cycle. Woods noted that much of the new investment is funded by fresh capital and excess cash rather than large-scale sales of stocks and bonds.
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