Private market investing has historically been the domain of institutions and ultra-high-net-worth individuals. However, the landscape is evolving rapidly. New technologies, regulatory shifts, and growing interest from retail and accredited investors are reshaping the future of private capital. Over the next decade, we believe there will be transformations in how, where, and by whom private market investments are made. From tokenised assets to predictive analytics, the future is being built today, and it's more accessible, data-driven, and purpose-oriented than ever before.
At ADDX, we believe in five key trends that could define private market investing in 2025 and beyond, trends that reflect how the ecosystem matures and what investors need in a more agile, digitally enabled environment.
Let’s explore what lies ahead.
1. Tokenisation's role in the next era
Across regions, regulators are moving forward. Singapore’s MAS Project Guardian and Hong Kong’s HKMA Project Genesis are exploring frameworks for tokenised bond issuance and digital asset custody. Meanwhile, institutional adoption is quietly accelerating. Traditional fund managers and financial institutions are beginning to integrate tokenisation to increase capital efficiency and improve asset distribution.
In the next decade, we expect:
- Broader asset coverage: From commercial papers to private equity and hedge funds, more private assets will be tokenised.1
- Institutional adoption: Sovereign funds, insurers, and large asset managers are already exploring tokenised fund structures. 2
- Improved liquidity: Secondary trading markets for tokenised assets will allow greater flexibility and more growth opportunities.3
2. Private credit is gaining strategic ground
As global interest rate cycles shift and banks pull back on lending, private credit has emerged as a major beneficiary. The asset class offers relatively attractive yields, shorter durations, and a low correlation to public market, making it a natural allocation for investors seeking income-generating solutions.
Preqin forecasts the global private credit market will surpass US$2.8 trillion by 2028, up from approximately US$1.5 trillion in 2022.4
Private credit appeal has broadened from institutional allocators to family offices and sophisticated accredited investors. In Asia, a rising number of investors are looking to deploy capital into yield-generating, floating-rate strategies that can navigate changing economic conditions and market cycles. This could position private credit as a core component of alternative investment portfolios over the next decade.
3. Portfolio resilience will drive demand for alternatives
The traditional 60/40 portfolio is being reassessed in response to the growing recognition of diversification benefits and evolving approaches to asset allocation. Investors are increasingly shifting toward alternative strategies to build resilience and potentially enhance returns.
According to a 2024 Campden Wealth report, over 54% of family offices in Asia-Pacific plan to increase their allocation to private equity, private credit, and venture capital over the next five years.5
Meanwhile, public markets have shown significantly higher volatility - the MSCI World Index experienced drawdowns of nearly 50% during the dot‑com crash and took four years to recover, while private equity dropped only ~20% and rebounded within two, according to Hamilton Lane’s research.6,7
Similarly, in the 2008 financial crisis, private markets again demonstrated lower downside and faster recovery. Over the past 15 years, private markets with volatility have consistently delivered better risk‑adjusted returns and far fewer painful down periods compared to public equities and hedge funds.7
Learn more about reasons to consider in investing in alternatives
4. Liquidity, optionality, and control are becoming standard expectations
Historically, private markets have been defined by long lock-up periods, high minimums, and limited visibility into performance. But as investor profiles evolve, so do expectations. Individual accredited investors today expect greater optionality, liquidity, and self-directed access without compromising quality.
This shift is driven by:
- Demographic change: A younger cohort of digitally-native accredited investors is growing and becoming increasingly well-informed and in control over their portfolio.
- Technology: Digital platforms enable faster onboarding, streamlined KYC, and automated investment execution.
- Regulatory clarity: Frameworks in Singapore, UAE, and Europe are improving cross-border distribution of private assets.
ADDX addresses this through regulated secondary trading and semi-liquid evergreen funds, fractionalisation of opportunities, and investor-first platform design. Private markets are no longer static; they are beginning to offer flexibility.
5. Personalised investor experiences will outpace one-size-fits-all product offerings
Investors are moving away from cookie-cutter products and toward more personalised outcomes. Rather than asking, "What’s the best product?" The question becomes: "What fits my specific risk appetite, liquidity needs, and time horizon?"
In response, platforms will increasingly offer:
- Customisable products
- Tailored onboarding journeys based on investor goals
The future of private investing isn’t just about broader access; it’s about ensuring the right fit between product and investor needs.
Learn more about investment opportunities with ADDX.
Looking ahead
We are entering a new era where private markets and alternative investing are no longer reserved for a select few. Enabled by technology, powered by transparency, and shaped by evolving investor needs, the next decade will belong to those who embrace change.
At ADDX, we believe in building infrastructure for the future. One that’s inclusive, efficient, and designed for the investors of tomorrow.
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Sources:
1Asset tokenization now and in the future | State Street
2Portfolio Management for Institutional Investors | CFA Institute
4Private debt AUM to hit all-time high of US$2.8 trillion by end-2028: Preqin - The Business Times
5Asia-Pacific family offices look towards alternative investments, real estate, and equities amid inflationary backdrop | Campden Wealth
6The Private Equity Playbook: How Hamilton Lane is Navigating Volatility with Evergreen Funds
This article is for general informational purposes only and has not been independently verified to ensure its accuracy and fairness. This article does not constitute any advice or recommendation from ADDX or ICHX Tech Pte. Ltd. (“ICHX”) or any of its affiliates. Please consult your own professional advisors about the suitability of any investment product/securities/ instruments for your investment objectives, financial situation and particular needs. No representation, warranty or other assurances of any kind, expressed or implied, is made with respect to the accuracy, completeness, adequacy, reliability validity or availability of any information in this article. Under no circumstance shall ADDX or ICHX bear any liability to the reader for any loss or damage of any kind incurred as a result of the use or reliance on any information provided in this article. This article may not be modified, reproduced, copied, distributed, in whole or in part and no commercial use or benefit may be derived from this article without the prior written permission of ADDX and ICHX. ADDX and ICHX reserve all rights to this article.
