APAC insurers pivot $3.8t into private market assets

Senior execs across Singapore and Australia are targeting a 13% increase in unlisted holdings.

Asia-Pacific insurance asset managers want to increase their private market and hedge fund holdings from 20% to 33% of portfolios within five years,

A study by Clearwater Analytics, which surveyed executives managing a combined $3.8t in assets, revealed a shift in investment strategy across Hong Kong, Singapore, and Australia.

The move is largely driven by a search for better returns and diversification. 

Currently, nine in 10 of surveyed executives believe private markets offer more attractive opportunities than public markets. 

Amongst different types of firms, third-party managers show the strongest interest in diversification, with 30% expecting it to increase dramatically, compared to 10% of life and health insurers and 4% of general insurers.

Despite the planned growth, firms report several operational hurdles. 

Specifically, 41% of executives cite legal and compliance complications as a major challenge when investing in private markets. 

Additionally, 29% find it difficult to view and manage private market assets alongside traditional asset classes on their current systems. 

The next 24 months will see varied levels of investment across different asset classes. 

Private equity and venture capital are the top priorities, with 65% of executives expecting allocations to increase dramatically. 

This is followed by private credit at 51% and real assets at 45%. Whilst public fixed income remains a staple, only 43% expect dramatic increases in that area, and just 19% say the same for public market equities.

Industry consolidation is also on the horizon, with 96% of executives expecting an increase in mergers and acquisitions over the next three years. 

Shane Akeroyd, Chief Strategy Officer at Clearwater Analytics, noted that whilst the conviction to invest in private markets is high, insurers must address these technology and compliance gaps to remain competitive.

The research was conducted by PureProfile in October 2025 and involved 150 senior executives from life, health, and general insurance asset management arms.