Asian institutional investors and family offices are showing continued confidence in private investments, with 40% planning to increase their allocations over the next 12 months and the remainder holding steady, according to a new poll by global investment firm Cambridge Associates ( CA ).

Conducted in Q2 2025 across 35 investors in Singapore and Hong Kong, the poll reveals that while a majority ( 60% ) maintain a neutral outlook, nearly one-third ( 31% ) expressed optimism about private market performance in the coming year. Only 9% reported a negative view, indicating that sentiment remains largely resilient despite global macroeconomic headwinds.

The survey also underscores the factors shaping current investment attitudes. Geopolitics and geoeconomics topped the list of concerns, followed closely by issues around exits and distributions, key indicators of market liquidity, and return realization in private markets.

While private equity and venture capital have historically outperformed public markets over the long term, CA notes that recent investor behaviour has shifted towards private credit.

This trend is reflected in the survey, with private credit emerging as one of the top three strategies investors plan to increase allocations to, alongside co-investments and growth equity.

Private credit’s relative outperformance, supported by a higher interest rate environment and stronger downside protection compared to equity strategies, appears to be driving this preference.

“Private market returns are expressed in years rather than in months, and undertaking a long-term perspective is crucial,” says Vish Ramaswami, partner and head of Asia-Pacific private investments at Cambridge Associates. “Despite short-term pressures, the long-term diversity and resilience of private markets remain a cornerstone of their appeal.”

“Given the wide dispersion in returns for private investments, investors need to focus on how managers are navigating current challenges, creating value, and executing successful exits. In addition, investors who steadily commit capital across vintage years can mollify the risk associated with any single vintage,” he adds.