IAM that Skipped ‘Private Credit’ Sees AUM Surge Sixfold

Why It Matters

The surge demonstrates that a disciplined, fee‑only approach can outperform peers amid private‑credit turbulence, reshaping asset allocation preferences for high‑net‑worth investors in Asia.

Key Takeaways

• AUM grew sixfold to SGD 1.4 billion by 2025
• Paragon avoids private credit due to underwriting concerns
• Fee‑only model aligns incentives, driving 20% fund returns
• Partners with 16 banks across three continents for client coverage
• IAMs seen as wealth enablers, not bank replacements

Pulse Analysis

The recent shake‑out in private‑credit markets—highlighted by the collapse of Tricolor Holdings and First Brands Group—has forced many asset managers to reassess credit risk exposure. In Asia, where ultra‑wealthy investors demand both yield and capital preservation, the perceived erosion of underwriting standards makes private‑credit products less attractive. Firms that sidestep this segment can reallocate capital to more transparent equity or macro strategies, thereby shielding client portfolios from the volatility that has plagued ill‑liquid loan funds since early 2026. Consequently, capital can be redeployed into liquid markets where valuation metrics are clearer.

Paragon’s fee‑only, retrocession‑free structure exemplifies how alignment can drive performance. By charging only management and performance fees, the firm eliminates conflicts of interest that arise from third‑party commissions, giving clients confidence that every trade is evaluated on merit. This model also incentivizes portfolio managers to pursue high‑conviction ideas, a factor reflected in the near‑20% returns of its SAGE and Alpha I funds over the past two years. For high‑net‑worth individuals, such transparency translates into clearer fee expectations and a stronger basis for trust. The approach also simplifies regulatory reporting, a boon in jurisdictions with stringent compliance regimes.

Rather than consolidating with a handful of banks, Paragon has cultivated relationships with sixteen institutions across North America, Europe and Asia, a strategy that mirrors the fragmented nature of the Asian wealth ecosystem. This breadth enables the IAM to meet client‑specific banking preferences, accelerate onboarding, and tap into diverse distribution channels. As family offices increasingly seek bespoke advisory services, the symbiotic link between independent managers and private banks is likely to deepen, positioning firms like Paragon as essential intermediaries that bridge capital expertise with global banking infrastructure. Such a network also cushions the IAM against regional downturns, preserving AUM growth.