Blackstone plans to double headcount in Asia targeting wealthy

[HONG KONG] Blackstone plans to double headcount in Asia targeting rich individuals as it seeks to boost allocations to its funds by private banks, wealth advisors and family offices.

The US firm plans to hire across Singapore, Hong Kong and Tokyo, where it currently has 20 people to "provide innovative solutions that are designed for eligible Asian individual investors", Herbert Suen, Singapore-based head of private wealth solutions Asia at Blackstone, said in an interview. The firm could also add headcount in Shanghai, Suen said, adding that it mainly partners with private banks in the region that serve high-net-worth individuals.

The plan is part of a broader recruitment drive at the New York-based company to target the world's wealthy. Firms such as Credit Suisse Group and Apollo Global Management have made key personnel moves to beef up wealth business in Asia where the rich are pouring money at a record pace into alternative assets through private banks and high-end investment firms to escape low-interest rates and volatile listed markets.

Asia is poised for the biggest jump in individuals with a net worth of at least US$30 million, according to a Knight Frank report. By 2025, the region will be home to 24 per cent of all ultra-high net worth individuals, up from 17 per cent a decade earlier.

At Blackstone, which started the business in the region 7 years ago, response from Asian investors have been "tremendous over the last couple of years and inflows have grown multiple times", said Suen.

Globally, institutional investors usually allocate about 25-40 per cent of their portfolio to alternative investments, while it's only about 5 per cent for individual investors, according to Suen. Blackstone has created "semi-liquid" structures to meet demand for individuals who prefer shorter lock-up for their investments and more liquidity, he said.

Blackstone oversaw US$192 billion of assets for retail investors as of December, representing more than 20 per cent of its total US$881 billion of assets under management. BLOOMBERG