High-net-worth ( HNW ) investors in Asia-Pacific, particularly in Hong Kong, Singapore, and Taiwan, are showing an increasing appetite for alternative assets.

A recent survey by Brookfiled Oaktree Wealth Solutions’ The Alts Institute reveals that 87% of HNW investors, or those with US$2.5 million or more in investable assets, plan to increase their alternative investments, with 44% comfortable with allocating over 25% of their portfolios to these assets.

Furthermore, 85% believe alternatives will outperform traditional portfolios over the long term, underscoring their role in wealth preservation and growth.

Trust in financial advisers is also paramount, with 88% seeking more discussions on alternatives and 87% relying on advisers to make decisions. However, transparency remains a concern, as investors seek a clearer understanding of the investments they are involved in.

This appetite for alternatives reflects a broader global trend, with such investments moving from niche to mainstream.

“Many high-net-worth clients in Asia have accumulated their wealth through real estate investments. This familiarity with tangible assets makes them more comfortable exploring similar alternative asset classes such as infrastructure, renewables, and private credit,” Singapore-based Jeremy Hall, managing director and head of Asia-Pacific for Brookfield Oaktree Wealth Solutions, tells The Asset in an interview.

High-growth opportunities

It’s not only familiarity with the asset class that is driving this appetite. Hall points out that Asian investors, especially those in Hong Kong and Singapore, are looking to diversify away from their concentrated real estate holdings. “With alternatives offering access to other high-growth areas such as infrastructure and renewable energy, these investors are actively seeking opportunities to spread their capital across different sectors,” he explains.

The rise of younger ultra-high-net-worth individuals and the generational transfer of wealth in Asia, particularly in markets like India, Thailand, and Japan, are driving demand for new asset classes such as renewables, AI ( artificial intelligence ) infrastructure, and decarbonization, making them more likely to add alternatives into their investment portfolios, Hall shares.

In his current role, Hall is responsible for developing and maintaining relationships with wealth intermediaries across the Asia-Pacific region.

He also works directly with intermediary firms ( banks, private banks, family offices, and wealth managers ) to host events and provide access to specialists who can offer in-depth expertise and insights into alternative investment strategies.

To improve awareness and understanding of alternative investments, Brookfield Oaktree Wealth Solutions is addressing educational gaps among HNW investors through several key initiatives, but primarily via The Alts Institute which provides proprietary research and white papers on different asset classes and explains historical returns, volatility levels, and the role that each asset class can play in a diversified portfolio.

“The Alts Institute is designed not as a product-pushing platform but as an educational resource focused on demystifying alternative asset classes. The goal is to help investors understand what alternatives are, the roles they can play in a portfolio, and how they can enhance growth, provide income, and diversify risk,” adds Hall.

Megatrends

The focus on foundational knowledge rather than selling specific products allows investors to gain a clearer picture of the value of alternatives.

The learning is not a one-way street, however. Brookfield Oaktree Wealth Solutions has developed vehicles like its evergreen fund structures based on direct feedback from partners in the wealth management space. “By collaborating with intermediaries and responding to their clients' needs, they can continually refine their offerings to make alternatives more accessible and understandable to HNW investors, especially those who are newer to this asset class,” he says.

With the rapid growth of generative AI and digitalization, there is a strong demand from Asian-based investors for exposure to digital infrastructure assets, such as data centres, which support these technologies. “Investments in AI data centres are considered a future-proof alternative asset, and align with technological megatrends.”

HNW investors in the region are also being increasingly drawn to renewables, such as wind and solar energy projects, driven by the global transition to cleaner energy sources, with younger investors increasingly keen on "transition investing", which involves transitioning carbon-intensive assets into greener, more sustainable replacements.

Hall points out that Brookfield, the parent company of Brookfield Oaktree Wealth Solutions, has a strong focus on renewables, with around US$100 billion invested in renewable energy and decarbonization initiatives. This sector is seen as both a growth opportunity and a way to match investments with social and environmental goals.

These emerging trends and asset classes are also set to capture more interest in 2025, Hall says, driven by technological advancements, the global energy transition, and the evolving preferences of high-net-worth investors.