The asset allocation shift: Why smart money is moving into infrastructure, tech and private credit

AS appetite for investments in private markets grows among high-net-worth individuals, these markets – once the preserve of large institutions and the ultra-rich – are becoming more accessible to a broader range of investors. This shift is being driven by innovation and the growing capabilities of private banks.

According to HSBC Private Bank’s Global Entrepreneurial Wealth Report (GEWR) 2025, 46 per cent of the 3,083 entrepreneurs surveyed across 15 markets said they invest equally in both private and public assets.

The report shows that in Singapore, entrepreneurs commonly hold private assets as part of their core wealth allocation, alongside property and life insurance. This reflects a broader approach to long-term planning, supported by strong confidence in future wealth creation.

The study found that 95 per cent of Singapore entrepreneurs expect their personal wealth to grow. It also found that 63 per cent live across multiple markets, underscoring their international exposure and cross-border mindsets – factors that influence how they think about long-term diversification.

Says Mathieu Forcioli, global and Asia-Pacific head of alternatives, wealth and premier solutions at HSBC: “Private markets used to be an exclusive asset class, but that is changing. Private banking clients are looking for new ways to diversify, and there are more opportunities available to them than ever before.”

A shift towards long-term opportunities

Private markets include investments in companies, projects or assets that are not traded on public exchanges, such as private equity, private credit, infrastructure and real estate.

Investors are increasingly drawn to private markets for their potential to deliver steady returns and add diversification to portfolios, especially as stocks and bonds have often moved in the same direction in recent years.

At the same time, private market investments typically involve longer lock-up periods and less liquidity compared with public markets, which is an important consideration for investors.

“What’s interesting about private markets is that they’re less swayed by daily headlines,” Forcioli says. “They are driven by long-term structural trends, like technology, demographics and sustainability.”

In Singapore, this long-term perspective aligns with the way entrepreneurs structure their wealth. The GEWR study highlights that private assets form a meaningful part of the diversified portfolios held by Singapore entrepreneurs, reinforcing the role of alternatives as part of long-term planning.

Among the sectors attracting the most attention is infrastructure, which remains one of the most active and resilient areas of private markets. Private credit and technology are also drawing significant interest, and Forcioli believes these themes will continue to drive demand.

“Infrastructure is a very powerful theme right now. As economies re-onshore and move supply chains closer to home, there’s a growing need for new roads and airports to support manufacturing centres,” Forcioli says.

He also notes as countries modernise their industrial sector to embrace automation and artificial intelligence and shift towards renewable energy, the need for new infrastructure will continue to grow, offering fresh opportunities for private market investors.

Building connections that create value

Investor demand for alternative assets has surged in recent years as clients increasingly seek long-term strategies that balance risk and reward. HSBC Private Bank has been well-positioned to capitalise on this shift, achieving double-digit growth in inflows across its alternatives platform, according to internal data shared by the bank.

“For many clients, alternatives are becoming a core allocation to build more resilient portfolios,” Forcioli says.

He attributes this success to HSBC Private Bank’s decades of experience across market cycles and long-standing relationships with leading asset managers.

“We began our journey in alternatives in 1989, and since then, we’ve built strong relationships with leading asset managers around the world. We spend a lot of time identifying and selecting the right ones. It’s not just about offering access – it’s about providing context, relationships and advice so our clients can make informed decisions.”

Technology-driven insights

To further enhance that advisory approach and support clients as they navigate an increasingly complex investment landscape, HSBC Private Bank integrates advanced technology into its investment process.

Its Prism Advisory platform, powered by BlackRock’s Aladdin Wealth, allows clients to model their portfolios, analyse risk and view public and private holdings together – a level of transparency that was once limited to institutional investors.

Forcioli says this combination of digital insights and personal guidance captures HSBC Private Bank’s bespoke approach to offering a hybrid advisory model to help clients make the right connections.

“Our role is to connect clients to opportunities globally – whether that’s an infrastructure project in Europe or a credit fund in the United States – and help them understand how it fits into their long-term objectives,” he explains.

Building the future of wealth

As private markets continue to evolve, so does their relevance to Asia’s investors. GEWR highlights Singapore as the top global destination for entrepreneurial wealth relocation – reflecting sustained confidence in the city’s economic environment and its central role in global private market flows.

“Private markets will only become more important from here,” Forcioli says. “As access expands, investors who understand these opportunities early and who work with the right partners are the ones who will benefit.”

Learn more about HSBC Private Bank’s alternative investment solutions here.

Disclaimer: This article is for information only and is not a personalised communication from HSBC to you and does not constitute and should not be construed as legal, tax or investment advice or a solicitation of the sale or recommendation of any product or service. You should not make any investment decisions based mainly or solely on this article. All investments involve risks and may experience upward or downward movements and may even become valueless. Before making investment decisions, consider if the investment is suitable for you and seek advice from financial adviser (if required). Issued by The Hongkong and Shanghai Banking Corporation Limited.