New flows will have to be carefully managed if
Singapore is to maintain and enhance its status as a leading regional hub for
private equity. Private equity is just one of many aspects of
Singapore’s capital markets ecosystem that have benefited from regulatory
support.
Singapore Summit: Meet the largest APAC brokers you know
(and those you still don’t!).
For example, the Monetary Authority of Singapore (MAS) private markets
programme has encouraged leading private equity, infrastructure, and private
credit managers to set up and expand in Singapore – a process that has enhanced
the private market ecosystem.
More recently, the government outlined plans to bring together representatives
from the public and private sector to examine the financing ecosystem and
propose strategies to establish Singapore as a hub for regional growth capital.
Abrar Mir, Managing Partner and Co-founder, Quadria Capital, Source: LinkedIn
The growth capital workgroup will include representatives from private equity
and is designed to increase understanding of how various types of financing
assist companies at different stages of development.
Despite some high-profile LP downsizing, a number of private markets firms have
increased their presence in Singapore. This increase in private markets
activity reflects a structural repositioning rather than simple portfolio
rebalancing, suggests Abrar Mir, managing partner and co-founder, Quadria
Capital.
“While global private equity fundraising is
down around 34% from its peak, Asia has been disproportionately impacted,
declining by approximately 84% based on data from Preqin,” he says. “This does
not represent a full withdrawal of capital, but rather a reallocation away from
broad, China-heavy mandates toward more selective opportunities.”
Asia’s share of global capital has fallen
sharply from 46% to around 7%, with capital increasingly concentrated in North
America and, more recently, Europe. In this context, Singapore has reinforced
its role as the regional hub for deploying targeted Asia strategies and
accessing both institutional and private wealth capital.
Fundraising Pressure Reshapes Regional Strategy
Ansel Tan, APAC Private Capital Analyst, PitchBook, Source: LinkedIn
“Fundraising cycles have extended and, with
fewer funds closing, proximity to capital has become critical,” adds Mir.
“Singapore continues to anchor regional LP capital – from sovereign
institutions to family offices – and many global LPs maintain a presence there,
making it a natural base for managers.”
As a result, GPs are expanding their
on-the-ground presence, diversifying into adjacent strategies and asset
classes, while larger pan-Asian platforms continue to raise
multi-billion-dollar funds, further reinforcing the need for local execution
capabilities.
GPs increasing or establishing a presence in
Singapore reflects longer-term positioning, agrees Ansel Tan, APAC private
capital analyst at PitchBook.
“Singapore has become a base for regional
private capital platforms, combining access to a deepening pool of private
wealth, family office and cross-border capital, which is increasingly being
allocated to private markets, alongside proximity to deal markets across
Southeast Asia and the broader APAC region, including India and Japan,” he
says.
Singapore also serves as a structuring and
execution hub, reinforced by a supportive regulatory and tax environment that
gives managers clarity and consistency in terms of deal documentation and
cross-border fund structuring.
Rising Retail Participation Raises Alignment Concerns
Some traditional institutional investors have
expressed concern about the money flowing into private market funds from
wealthy individuals and even the mass retail market – concerns that mostly
centre on alignment of interest.
Institutional LPs see the risk that GP
behaviour could shift due to the growing prevalence of retail-focused vehicles
and retail capital, which come with different liquidity expectations, operating
requirements, and deal and fee dynamics.
“Key issues are liquidity and operational
complexity, since these (semi-liquid) structures offer periodic redemptions
against underlying assets that are illiquid,” explains Tan. “The recent
redemption pressure and outflows in private credit have shone a spotlight on
the liquidity mechanisms in these structures.”
Institutional LPs are wary that this inherent
mismatch could influence portfolio construction, asset exit timing, and
behaviour under market stress.
Operationally, retail-focused vehicles also
require continuous deployment, active liquidity management processes, and more
frequent valuation work, which increases demands across investment and
operational teams and introduces a more complex operating model overall.
Governance and co-investment pressures intensify
“Another concern is reduced allocation and
access to co-investments,” says Tan. “Institutional LPs have relied on no-fee,
no-carry co-investments to manage overall costs and to gain more exposure to
high-conviction deals. However, GPs may increasingly underwrite these deals
with capital channelled through retail vehicles (which come in at higher fee
levels), reducing the share available to traditional LPs.”
He suggests that LPs are starting to more
stringently review governance and conflicts around these topics, such as
proposing tighter language around retail allocation caps and reflecting these
issues in manager selection processes.
The MAS has referred to growing interest from
retail investors in such investments and interest from experienced industry
players to offer private market investment fund products to retail investors.
Wealth Capital Expands Singapore’s Private Markets
Base
According to Mir, the creation of the growth
capital workgroup is a strong signal that the state is trying to deepen the
private capital ecosystem and widen the capital base.
He acknowledges that concerns around the
growing participation of private wealth in private markets are understandable,
particularly in the current environment of weak exits and extended holding
periods, where distributions have yet to meaningfully recover.
Sustainable finance is moving fast—and the private market is the next frontier. 🌳💼
Assistant Prof Yao Tianhao is diving into how ESG is reshaping private equity, bridging the gap between profitability and social impact.
How do we keep pace with a field that changes every day?… pic.twitter.com/ni9I0vczQ8— SMU Lee Kong Chian School of Business (@sgSMULKCSB) May 4, 2026
This creates a potential liquidity mismatch,
as some wealth capital may have shorter time horizons than traditional
institutional investors.
“However, wealth capital still represents a
relatively small share of overall fundraising and is typically accessed through
structured vehicles such as semi-liquid or evergreen funds, which incorporate
gating mechanisms to manage redemption risk,” says Mir.
In markets like Singapore, private market
investments are limited to accredited investors, which ensures a baseline level
of sophistication and understanding of the risks involved. Importantly, there
remains significant dry powder within the high-net-worth and wealth segment,
alongside growing interest in areas such as impact.
Institutional Investors Double Down on Selectivity
and Discipline
“As such, while product design and liquidity
management are critical, private wealth capital can serve as a complementary
and increasingly relevant source of funding, and many managers, including
ourselves, are actively exploring these channels as part of a diversified
fundraising strategy,” says Mir, adding that institutional LPs are becoming
more selective and disciplined in response to the tougher fundraising
environment and evolving capital base.
“With the number of funds closed globally down
materially from the 2022 peak, we are seeing capital concentrate among a
smaller group of managers. This has reinforced a clear flight to quality, with
LPs prioritising managers with established track records, deep sector
specialisation, and the ability to deliver distributions in a more challenging
exit environment.”
At the same time, LPs are increasing scrutiny
around alignment, governance, and liquidity, while also expanding co-investment
programmes to maintain greater control over capital deployment.
In this context, Mir sees strong alignment
with LPs who are looking for differentiated, sector-led platforms. Overall,
rather than being displaced by retail capital, he believes institutional
investors are reinforcing a more bifurcated market where access to capital is
increasingly determined by demonstrated performance and specialisation.
New flows will have to be carefully managed if
Singapore is to maintain and enhance its status as a leading regional hub for
private equity. Private equity is just one of many aspects of
Singapore’s capital markets ecosystem that have benefited from regulatory
support.
Singapore Summit: Meet the largest APAC brokers you know
(and those you still don’t!).
For example, the Monetary Authority of Singapore (MAS) private markets
programme has encouraged leading private equity, infrastructure, and private
credit managers to set up and expand in Singapore – a process that has enhanced
the private market ecosystem.
More recently, the government outlined plans to bring together representatives
from the public and private sector to examine the financing ecosystem and
propose strategies to establish Singapore as a hub for regional growth capital.
Abrar Mir, Managing Partner and Co-founder, Quadria Capital, Source: LinkedIn
The growth capital workgroup will include representatives from private equity
and is designed to increase understanding of how various types of financing
assist companies at different stages of development.
Despite some high-profile LP downsizing, a number of private markets firms have
increased their presence in Singapore. This increase in private markets
activity reflects a structural repositioning rather than simple portfolio
rebalancing, suggests Abrar Mir, managing partner and co-founder, Quadria
Capital.
“While global private equity fundraising is
down around 34% from its peak, Asia has been disproportionately impacted,
declining by approximately 84% based on data from Preqin,” he says. “This does
not represent a full withdrawal of capital, but rather a reallocation away from
broad, China-heavy mandates toward more selective opportunities.”
Asia’s share of global capital has fallen
sharply from 46% to around 7%, with capital increasingly concentrated in North
America and, more recently, Europe. In this context, Singapore has reinforced
its role as the regional hub for deploying targeted Asia strategies and
accessing both institutional and private wealth capital.
Fundraising Pressure Reshapes Regional Strategy
Ansel Tan, APAC Private Capital Analyst, PitchBook, Source: LinkedIn
“Fundraising cycles have extended and, with
fewer funds closing, proximity to capital has become critical,” adds Mir.
“Singapore continues to anchor regional LP capital – from sovereign
institutions to family offices – and many global LPs maintain a presence there,
making it a natural base for managers.”
As a result, GPs are expanding their
on-the-ground presence, diversifying into adjacent strategies and asset
classes, while larger pan-Asian platforms continue to raise
multi-billion-dollar funds, further reinforcing the need for local execution
capabilities.
GPs increasing or establishing a presence in
Singapore reflects longer-term positioning, agrees Ansel Tan, APAC private
capital analyst at PitchBook.
“Singapore has become a base for regional
private capital platforms, combining access to a deepening pool of private
wealth, family office and cross-border capital, which is increasingly being
allocated to private markets, alongside proximity to deal markets across
Southeast Asia and the broader APAC region, including India and Japan,” he
says.
Singapore also serves as a structuring and
execution hub, reinforced by a supportive regulatory and tax environment that
gives managers clarity and consistency in terms of deal documentation and
cross-border fund structuring.
Rising Retail Participation Raises Alignment Concerns
Some traditional institutional investors have
expressed concern about the money flowing into private market funds from
wealthy individuals and even the mass retail market – concerns that mostly
centre on alignment of interest.
Institutional LPs see the risk that GP
behaviour could shift due to the growing prevalence of retail-focused vehicles
and retail capital, which come with different liquidity expectations, operating
requirements, and deal and fee dynamics.
“Key issues are liquidity and operational
complexity, since these (semi-liquid) structures offer periodic redemptions
against underlying assets that are illiquid,” explains Tan. “The recent
redemption pressure and outflows in private credit have shone a spotlight on
the liquidity mechanisms in these structures.”
Institutional LPs are wary that this inherent
mismatch could influence portfolio construction, asset exit timing, and
behaviour under market stress.
Operationally, retail-focused vehicles also
require continuous deployment, active liquidity management processes, and more
frequent valuation work, which increases demands across investment and
operational teams and introduces a more complex operating model overall.
Governance and co-investment pressures intensify
“Another concern is reduced allocation and
access to co-investments,” says Tan. “Institutional LPs have relied on no-fee,
no-carry co-investments to manage overall costs and to gain more exposure to
high-conviction deals. However, GPs may increasingly underwrite these deals
with capital channelled through retail vehicles (which come in at higher fee
levels), reducing the share available to traditional LPs.”
He suggests that LPs are starting to more
stringently review governance and conflicts around these topics, such as
proposing tighter language around retail allocation caps and reflecting these
issues in manager selection processes.
The MAS has referred to growing interest from
retail investors in such investments and interest from experienced industry
players to offer private market investment fund products to retail investors.
Wealth Capital Expands Singapore’s Private Markets
Base
According to Mir, the creation of the growth
capital workgroup is a strong signal that the state is trying to deepen the
private capital ecosystem and widen the capital base.
He acknowledges that concerns around the
growing participation of private wealth in private markets are understandable,
particularly in the current environment of weak exits and extended holding
periods, where distributions have yet to meaningfully recover.
Sustainable finance is moving fast—and the private market is the next frontier. 🌳💼
Assistant Prof Yao Tianhao is diving into how ESG is reshaping private equity, bridging the gap between profitability and social impact.
How do we keep pace with a field that changes every day?… pic.twitter.com/ni9I0vczQ8— SMU Lee Kong Chian School of Business (@sgSMULKCSB) May 4, 2026
This creates a potential liquidity mismatch,
as some wealth capital may have shorter time horizons than traditional
institutional investors.
“However, wealth capital still represents a
relatively small share of overall fundraising and is typically accessed through
structured vehicles such as semi-liquid or evergreen funds, which incorporate
gating mechanisms to manage redemption risk,” says Mir.
In markets like Singapore, private market
investments are limited to accredited investors, which ensures a baseline level
of sophistication and understanding of the risks involved. Importantly, there
remains significant dry powder within the high-net-worth and wealth segment,
alongside growing interest in areas such as impact.
Institutional Investors Double Down on Selectivity
and Discipline
“As such, while product design and liquidity
management are critical, private wealth capital can serve as a complementary
and increasingly relevant source of funding, and many managers, including
ourselves, are actively exploring these channels as part of a diversified
fundraising strategy,” says Mir, adding that institutional LPs are becoming
more selective and disciplined in response to the tougher fundraising
environment and evolving capital base.
“With the number of funds closed globally down
materially from the 2022 peak, we are seeing capital concentrate among a
smaller group of managers. This has reinforced a clear flight to quality, with
LPs prioritising managers with established track records, deep sector
specialisation, and the ability to deliver distributions in a more challenging
exit environment.”
At the same time, LPs are increasing scrutiny
around alignment, governance, and liquidity, while also expanding co-investment
programmes to maintain greater control over capital deployment.
In this context, Mir sees strong alignment
with LPs who are looking for differentiated, sector-led platforms. Overall,
rather than being displaced by retail capital, he believes institutional
investors are reinforcing a more bifurcated market where access to capital is
increasingly determined by demonstrated performance and specialisation.
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