Private markets open new frontiers for investors
HSBC Private Bank’s expertise in alternative investments helps clients across Asia access new opportunities
As appetite for investments in private markets grows among high-net-worth (HNW) 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 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 also found that in Hong Kong, private markets often receive a larger allocation than public ones, highlighting the city’s growing role in the global alternatives landscape.
“Private markets used to be an exclusive asset class, but that is changing,” says Mathieu Forcioli, global and Asia-Pacific head of alternatives, wealth and premier solutions at HSBC. “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 reduce overall portfolio risk, especially as stocks and bonds have often moved in the same direction in recent years.
“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.”
Among the sectors attracting the most attention are infrastructure, private credit and technology, which Forcioli believes 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 that as countries modernise their industrial sector to embrace automation and artificial intelligence (AI) 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 upon 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. Hong Kong’s position as a cross-border wealth hub and a gateway to global opportunities makes it a natural centre for growth.
“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.”
Disclaimer from HSBC:
Investments in emerging markets may be extremely volatile and subject to sudden fluctuations of varying magnitude due to a wide range of direct and indirect influences. Such characteristics can lead to considerable losses being incurred by those exposed to such markets.
This article 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.
Issued by The Hongkong and Shanghai Banking Corporation Limited