In a recent ION Influencers fireside chat hosted by Giovanni Amodeo, Henry Chui, Head of Private Wealth APAC at Partners Group, provided an in-depth look into the evolving private wealth landscape in the Asia-Pacific region.

Henry Chui underscored that the private wealth revolution in Asia Pacific is just getting started. With the right mix of education, customization, local expertise, and innovative fund structures, firms can capitalize on one of the most dynamic and fastest-growing segments in global finance. Here’s a comprehensive summary of the discussion, highlighting key insights, emerging trends, and strategic priorities for the future of private markets.

Topics Discussed

1. Henry Chui’s Career Journey

• Moved to Hong Kong from Canada driven by a desire to be in Asia during a period of economic expansion.

• Entered the asset management industry with a focus on private wealth distribution—a then-nascent sector.

2. Three Tailwinds Driving Growth in Asia-Pacific

• Rise of recurring revenue products post-2008 financial crisis.

• Explosion of wealth in Asia, especially China, Singapore, and Hong Kong.

• Surge in private market allocations by high-net-worth individuals (HNWIs), transitioning from public markets.

3. Conditions for Success in Private Wealth Management

• Strong investment platform with digestible solutions like Evergreen funds.

• Client education and after-sales service to build confidence in alternatives.

• Localization of services across diverse Asian markets to meet regional needs.

4. Evolving Investor Behavior in Asia

• Investors in Asia—particularly North Asia—have a trading mentality and favor short-term liquidity.

• Many are first-generation wealth creators seeking returns comparable to their businesses.

• Growing awareness and comfort with long-term, alternative investments.

5. The Role and Rise of Evergreen Funds

• Offer instant diversification, liquidity, and low minimum investments.

• Solve problems associated with closed-end funds like capital calls and long lock-in periods.

• Enable compounding from Day 1 and improve investor access to private markets.

6. Milestones to Increase Alternative Allocations

• Currently, only ~1% of private wealth is allocated to alternatives; a shift to 5–10% represents significant market potential.

• Key enablers include industry-wide education, more players entering the market, and improved distribution platforms.

7. Industry Partnerships and Innovation

• Partners Group + BlackRock: A strategic collaboration aimed at improving access to Evergreen funds and portfolio rebalancing for smaller-ticket investors.

8. Market Dynamics: Big Players vs. Small Entrants

• Large firms have entered rapidly, investing in infrastructure and education.

• Partners Group has a 20-year head start and institutional knowledge, giving it a competitive edge in scaling.

9. Crucial Future Roles

• Emphasis on client-facing teams and solutions delivery.

• Customization and portfolio construction tailored to regional preferences and risk appetites.

10. Macro Trends & Regulation

• Watching regulatory evolution across Hong Kong, Singapore, Japan, Taiwan, China, Thailand, and Malaysia.

• Emphasis on regulatory openness to allow wider retail access to private markets.

• Growing need for customized portfolios in response to volatility, policy shifts, and inflationary concerns.

11. Staying Focused Amid Market Expansion

• Future strategy involves market segmentation:

  • Mass retail via core “shop window” products.

  • HNWIs and family offices via custom mandates and building blocks for tailored portfolios.

Key timestamps:

00:07 Introduction to the Fireside Chat
02:19 The Evolution of Private Wealth Distribution
03:10 Post-Financial Crisis Trends in Wealth Management
04:08 Shifts in Investment Strategies Towards Private Markets
05:31 Key Success Factors in Wealth Management
07:12 Localization in the Asian Wealth Market
09:15 The Changing Landscape of Asian Investor Mindsets
11:16 Milestones for Increasing Alternative Investments
12:20 Advantages of Evergreen Funds
14:34 Accessibility of Evergreen Funds
16:03 Market Dynamics: Large vs. Small Players
17:42 The Importance of Client-Facing Roles
19:10 Emerging Trends in Wealth Management
20:48 Customization in Investment Solutions
23:01 Navigating Wealth Growth and Market Segmentation
23:47 Evolving Product Design and Client Needs
24:31 Innovative Investment Strategies: The Royalty Approach
26:16 Future Client Demands and Market Trends
26:50 The Role of Brand and Marketing in Client Relationships