Family Office Demand for Alternatives Rising in Asia

Why It Matters

The shift forces asset managers to adapt product offerings and underscores the growing influence of Asian family offices on global alternative‑investment markets.

Key Takeaways

• Asian family offices prioritize equities, gold, and alternatives next year
• Private credit exposure reduced; focus shifts to private equity and hedge funds
• Hedge funds gaining traction for liquidity and diversified, low‑volatility returns
• Evergreen fund structures attract families seeking perpetual capital with periodic liquidity
• In‑house multi‑strategy hedge fund platforms being built to meet client demand

Summary

Asian family offices are increasingly allocating to alternative assets, as a Bloomberg Intelligence survey of senior private bankers in Hong Kong and Singapore shows equities leading, followed by gold, private equity, digital assets and hedge funds. The discussion at the Family Office Summit highlighted how geopolitical tensions and rising defaults in private credit have reshaped risk appetites.

Respondents now favor more liquid alternatives. Private credit exposure has been trimmed to near‑zero after a decade of leverage‑driven losses, while private equity remains attractive despite slower IPO exits, especially in Hong Kong. Hedge funds are gaining favor for their bond‑like returns and lower volatility, prompting firms like VMS to develop in‑house multi‑strategy platforms.

Elton highlighted the shift from deal‑chasing to building formalized investment frameworks, noting that families seek diversified, institutional‑style allocations. Christina emphasized the appeal of evergreen and perpetual fund structures that provide continuous capital while offering periodic liquidity, mitigating the illiquid nature of private markets. Matthew stressed the importance of multi‑manager, multi‑strategy hedge fund solutions as the primary beneficiary of this trend.

The move toward structured, liquid alternatives signals a maturing Asian family‑office ecosystem that demands professional asset‑allocation expertise. Asset managers will need to offer bespoke hedge‑fund capabilities and evergreen vehicles, while investors must balance long‑term illiquidity with near‑term redemption needs, reshaping capital flows across the region’s private‑market landscape.

Original Description

"Christina Au-Yeung, Head of Investment Management Services, Morgan Stanley Private Wealth Management Asia; Elton Cheung, Managing Partner, VMS Group

and Mathieu Forcioli, Global & Asia Pacific Head of Alternatives, Wealth & Premier Solutions, HSBC tell Bloomberg's Sharnie Wong the appetite for alternatives is growing in Asia family offices, they were speaking at the Bloomberg Family Office Summit 2026 in Hong Kong."

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