Alternatives industry experts and economic leaders explored the expansive Asia-Pacific (APAC) region as a business powerhouse, and outlined the steps that are being taken to seize opportunities in new markets at MUFG Investor Services’ Singapore Alts & Private Markets forum in October.

The forum discussions analyzed how macroeconomics and new investment opportunities are reshaping the diverse region. Panelists described the need for cultivating purpose-driven cultures that align with local norms, the importance of reengineering operating models and working with trusted partners who understand nuances of individual countries, as well as the need to prepare for growing access to private markets.

CEO John Sergides hosted a fireside chat, “Reinventing Asia’s Economic Model,” with Dr. Jeffrey Jaensubhakij, Group Chief Investment Officer for GIC, which manages most of the Singapore government’s financial assets. The wide-ranging discussion touched on topics including monetary policy, asset class and regional investment strategies, venture capital, and ESG investing.

John asked how inflation and the U.S. Federal Reserve’s recent decision to lower interest rates may influence GIC’s investment strategy for asset or geographical sectors, and “what areas are you looking at for the next three to five years to deploy capital?”

Noting opportunities for accumulating inflation-fighting assets including inflation-linked bonds, real estate, and infrastructure, Dr. Jaensubhakij said GIC is also exploring private asset classes, which have been impacted by rising interest rates. “For private equity, with the long lock up, you really need to set a hurdle rate that is high enough to earn that return,” he said. “But if today you can underwrite a private equity asset to, call it 20% growth returns, baking in the higher leverage cost, if you can find that asset and someone will sell it to you, now is the time to jump on it.”

Reinforcing the concept that firms cultivating a sense of purpose and embracing an employee wellness philosophy are more likely to be successful, Sarah Mears, our Chief Human Resources & Legal Officer, moderated the panel discussion, “The Art of Thriving: Cultivating a Purpose-Driven Culture.” Sarah was joined by Amy Cho, CEO and Head of Asia-Pacific, M&G Investments;  Amy Fong, Senior Advisor, FountainVest Partners (Asia) Limited; and Rahul Ghai, Managing Director – Asia, Salter Brothers, to share their experiences in building people-centric cultures, ranging from leadership and learning and development to addressing local customs in the region.

“For leaders in today’s environment, we have four generations of employees in the workplace at the same time,” Sarah said. “To create a culture that brings all of those (generations) together and creates a sense of purpose and belonging is very challenging.”

Rahul noted that purpose “aligns all the actions, all the decisions and all the strategies coming together.” Firms must be aware that profitability is not isolated from “things that matter—employee engagement, managing inside and external stakeholders, and understanding the purpose of the company.”

Citing recent studies of Singapore and APAC employees that found increased burnout and deteriorating trust, Amy Cho said firms must increase efforts to support employee growth along with pursuing business goals to improve trust and empowerment. “The level of trust between employers and employees actually is deteriorating,” she said, adding that despite financial challenges, leaders must make sure “that we communicate, we have empathy.”

The panelists all noted that programs increasing discussions about mental wellbeing in APAC must be priorities for all employee levels. “Not just the juniors, but also very senior people as well,” Amy Fong said. “It still remains a bit of a taboo to speak about. Some people feel that may reflect badly, in terms of whether they’re seen as a strong enough leader.”

The rapid expansion of the global alternative markets in the Asia-Pacific region is offering substantial new opportunities in infrastructure, real estate and other asset classes. That potential for new business and the ways in which APAC fund managers are increasing outsourcing as they reengineer their operating models was the theme of the panel discussion, “Requiem for Reengineering: Scaling Up Operations to Fuel Growth,” moderated by Dan McNamara, our Chief Strategy Officer & Chief Financial Officer. Dan was joined by Patrick Cordes, Chief Operating Officer of EQT Asia; Lynn Lau, Managing Director, CFO, Southeast Asia, Warburg Pincus; and Ivan Lim, Group Chief Financial Officer, ESR, to discuss areas that included automating platforms and technology, data management, and unique aspects of outsourcing for APAC business strategy.

Fund managers should focus on “gathering investor assets and generating alpha for their clients,” Dan said. “Anything else down the value chain is ripe for outsourcing.”

Patrick agreed, saying “we are trying to really achieve a maximal lean organization where we only have what’s essential, buy what we can buy. Sometimes when you buy something you need to have some kind of internal resource to help direct or manage that, but (outsourcing) is really the goal.”

When considering partners recently to outsource SPV administration, Lynn’s firm picked two, gave work to both and determine the strengths and weaknesses of both, and then gave work to each, depending on those strengths. The benefit of hiring regional outsourcing firms became apparent as the firm enters new countries and needs services. “Because we’re an existing client, they’re willing to do something even if it’s a very low value,” she said.

Ivan noted that in some countries, including China, having an experienced regional partner is critical to conducting business. “We need to rely on the local experts because of the nuances,” he said. “It’s a controlled currency for China, when you inject your capital, you need to register. Similarly, when you want to take out the proceeds, you also need to go through various regulatory approvals. Without the local knowledge it’s quite impossible for us to actually do it.”

In the forum’s final fireside chat, “The Future of Private Markets in APAC,” Fi Dinh, our Head of Fund Finance APAC, led a discussion with Brian Lim, Partner, Head of Asia and Emerging Markets Investment Team, Pantheon, and Hemal Mirani, Managing Director, Head of APAC, HarbourVest. After reviewing the growth of APAC’s private markets, as well as how they sustain professional growth with personal wellness, Fi asked that panelist to look toward the near- and longer-term future of private markets.

Hemal noted that private equity markets in APAC have recently been challenging with mixed results. “There have been vintage years that have been very, very good and very exciting,” she said, adding that some fund managers are now “making changes to fund sizes, investment strategy and teams, and I think that this will ultimately deliver better results for the industry.”

Looking ahead to 2031, and what an ideal environment would look like, Brian said monitoring the growth of private markets—particularly as the wealth channels gain greater prominence—will be critical. Private market investments will be “a lot more prevalent in people’s portfolios in five years,” he said. “Hopefully, as an industry, we will have been able to manage that responsibly.”