Investing in Private and Alternative Assets Gains Traction Amid Volatile Public Markets

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Investing in Private and Alternative Assets Gains Traction Amid Volatile Public Markets
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Experts suggest investing in private and alternative assets as a strategic move to avoid volatility in public markets in 2024. High-net-worth individuals and professional investors are increasingly diversifying into these types of assets, which are underutilised in Singapore and Hong Kong.

Anticipating the volatility in public markets in 2024 due to prolonged periods of rising interests, experts make a compelling proposition to invest in private and alternative assets . Some investors already see this as a strategic move to sidestep the more obvious jitters. According to Samuel Rhee, co-founder, chairman and chief investment officer of Endowus, high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) are putting greater emphasis on these types of assets.

Rhee said accredited investors in Singapore and professional investors in Hong Kong have also been diversifying into private markets and alternatives, which is underutilised by investors in both cities. “The systematic harvesting of illiquidity premiums coupled with the fact that companies are staying private for longer and the structural growth of private credit that is disintermediating the banks allows for greater opportunities to be had for investors in this space,” Rhee told the Singapore Business Review and Hong Kong Business magazine

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