Market realities, particularly lingering inflation, stretched valuations, and the return of volatility to global markets, are pushing Asia’s high-net-worth individuals ( HNWIs ) to turn decisively towards alternatives to build resilience, diversification, and yield.

Speaking at the J.P. Morgan Asset Management’s Asia-Pacific Media Summit 2025 in Seoul, Jed Laskowitz, global head of private markets and customized solutions, and James Burdis, head of global strategic relationships and private wealth, outlined how alternative assets ( private equity, private credit, real assets, hedge funds, etc. ), long the preserve of institutions, are entering the private wealth mainstream.

“Everyone is talking about alts,” says Burdis. “For the first time, these strategies are finding their way into the hands of investors across the spectrum, from sovereigns and pensions to family offices and affluent individuals.”

With the traditional 60/40 equity-bond model strained by persistent inflation and market uncertainty, alternatives are being seen as complementary building blocks that can strengthen portfolios.

“Adding alts helps lower volatility and increase returns,” Laskowitz says. “They provide diversification, inflation protection, and yield – three things investors need more than ever.”

Shift to private clients

Institutional investors have used alternatives for decades to smooth out returns and protect against downturns. Now, the focus is shifting to private clients – particularly Asia’s growing mass affluent and private banking segments.

While ultra-wealthy families in the region already hold over 20% of their portfolios in alternatives, J.P. Morgan estimates that the mass affluent segment, currently averaging just 2%, could grow to 8%-12% in the next few years. That represents roughly US$2-3 trillion in assets in motion.

“The democratization of alts is real,” Burdis emphasizes. “The challenge is to make access easier through semi-liquid funds, evergreen vehicles, or even ETFs, while ensuring education and responsible investing.”

Laskowitz says wealth investors need to understand the liquidity trade-offs in alternatives. “You get higher returns by giving up some liquidity. The key is finding the right balance and helping investors make informed decisions.”

Across Asia, the hunger for predictable income streams is steering investors towards infrastructure, transport, and real estate. These assets offer long-term contracted cash flows and inflation-linked returns, appealing in an environment where volatility is back.

Inflation hedges

“Infrastructure allocations have doubled in the past five years and are expected to double again. Energy transition, digital infrastructure, and transport are trillion-dollar opportunities,” Laskowitz notes.

Real estate, still trading below pre-pandemic valuations, is another area regaining investor attention as inflation hedges become more valuable.

J.P. Morgan believes the ability of the asset class to connect public and private markets sets it apart. “Origination is the new alpha,” says Laskowitz, citing the firm’s US$18 billion annual tech spend and global reach as key advantages for sourcing opportunities in real assets, credit, and private equity.

Looking ahead, the executives see the next chapter of growth in education, vehicle innovation, and access expansion.

“There really is no other alternative than to use alternatives. We want to be at the forefront of that evolution for Asia’s wealth investors,” Burdis says.