Private Market Developments in APAC – now is the time to engage

Private markets refer to segments of the capital markets where investments are made in assets that are not publicly traded on stock exchanges. Examples typically include private equity, private credit, venture capital and real assets such as infrastructure or real estate. Non-Bank Financial Institutions (NBFIs) such as private equity funds, hedge funds, insurers, venture capital funds and pension funds are the dominant participants in private markets. There is also a deep interconnectedness with the conventional banking system, which lends both to private funds and to the companies they back. According to S&P Global, private markets are projected to reach $15 trillion in 2025, up from $10 trillion in 2021. The FSB’s 2024 monitoring shows the non-bank sector expanded by 8.5 per cent in 2023, lifting its share of global financial assets to nearly 50 per cent.

Opportunities in Asia's Evolving Financial Landscape

However, this growth is not evenly spread. In Asia, banks still provide about 80 per cent of all credit, compared with only around one-third in the US. 

There are significant opportunities for private markets to fund the region’s need for infrastructure investment in areas including energy transition, digital infrastructure and transport, finance mid-market firms and tap into new pools of capital with a fast-growing population of high-net-worth and ultra-high-net-worth individuals and ongoing pension reforms.

Learn more about how capital markets tools are evolving across Asia in our analysis of APAC securitisation frameworks and regulatory caution:

Regulatory Perspectives and Emerging Frameworks

While policy makers globally have recognised the growing appetite for private markets, especially as they consider further retail access, they are also concerned about governance standards, opaque or inconsistent valuations, excessive leverage and conflicts of interest. We have not seen any “hard” regulation in APAC so far, but regulators are exploring how to reap the benefits of long-term private capital whilst ensuring retail investor protection and fair, transparent and resilient markets.

For another perspective on how Asian regulators are approaching innovation while protecting retail participants, read our take on Hong Kong’s crypto consultation and the move toward retail inclusion

The risks identified by regulators are generally consistent across APAC, but jurisdictions have not taken a single view on how to advance the regulatory framework, resulting in a potentially fragmented regulatory landscape.

• In Singapore, the industry is awaiting next steps from the MAS following their March 2025 consultation on a retail-access framework for long-term investment funds.
• In Hong Kong, the SFC has clarified how closed-ended alternative funds may list on the exchange.
• The Australian Securities and Investment Commission (ASIC), further to a consultation earlier this year, recently published a report outlining updates on its research progress into Australia’s public and private markets, flagging encouraging industry practices but also regulatory concerns, with further guidance expected in November.

Engagement and Strategic Positioning for Success

As regulators are in study mode, there is an opportunity for market participants to engage early and constructively help to shape a framework that is balanced, fit for purpose and built for sustainable growth. Across Asia, regulators are researching data gaps and leverage, and are exploring ways to broaden access for pensions and retail investors without creating undue risks. Industry perspectives may diverge, but firms that engage early and demonstrate the highest standards will be best placed to shape the regulatory framework.

There is a significant opportunity in Asian private markets for firms that engage constructively with policymakers and regulators, and can show strong governance, reliable valuations, sound conflict-management and tangible economic benefits.

To be successful, engagement in Asia needs to take into account local nuances, and firms should demonstrate how private credit, infrastructure financing and new fund structures support the real economy: what does it mean for jobs, investment and productivity? Education and awareness-raising are critical, and supported by credible evidence and demonstration of concrete risk-management measures. Approaches must also be tailored in a fragmented and diverse region with developed financial markets such as Japan, Australia, Hong Kong, and Singapore as well as developing markets like India and parts of Southeast Asia.

You may also be interested in our broader overview of regulatory, geopolitical and market risks shaping APAC economies and investors’ strategic decisions

At Flint Global we help you navigate the fast developing regulatory environment and support you with impactful engagements across APAC. Our goal is to help you secure outcomes that support your commercial objectives.

This blog was written by APAC Partner Laurence Van der Loo and APAC Consultant Geoffrey Lee.