Big investors still hunting private market deals, including in S’pore, despite risks, slower exits

Despite a sharp decline in private equity deal value, Singapore remains a “crown jewel” for private equity investments in South-east Asia, according to a report by KPMG.

SINGAPORE – Big investors are not giving up on private markets, even as geopolitical tensions, elevated interest rates and slower exits make it harder for them to get their money back from existing investments.

At the same time, the growing race to build infrastructure for artificial intelligence is creating fresh investment opportunities, offering a potential boost to the sector.

Jeff Fine, global co-head of alternatives capital formation at Goldman Sachs Alternatives, said: “The combination of geopolitical tensions and elevated rates has slowed traditional exits, but the race to power AI infrastructure is creating the most consequential deployment window of the decade.”

About 84% of institutional investors plan to maintain or increase their investments in private markets despite challenges in recouping capital from existing investments, according to Goldman Sachs’ 2026 Global Alternatives Survey.

Private markets refer to investments that are not traded openly on stock exchanges, unlike shares of companies such as DBS, Singapore Airlines or Singtel. They include private equity, private credit, infrastructure and certain types of property investments.

These investments have attracted interest because they provide access to opportunities beyond listed shares and bonds. However, they can be harder to value and sell, and investors may have to wait longer to get their money back.

The study collected responses from 255 limited partners and other institutional investors, surveyed between June and August 2026.

Limited partners are passive investors who contribute capital but have no day-to-day management control and limited legal liability.

Respondents included pension funds, insurance companies, university endowments and foundations, sovereign wealth funds, asset managers and family offices from around the world.

Twenty per cent of the respondents manage more than US$100 billion (S$128 billion) in assets. By region, respondents were split among the Americas (43%); Europe, the Middle East and Africa (40%); and the Asia-Pacific (17%).

Goldman Sachs found that 37% of investors surveyed plan to allocate more money to private markets than they did in the previous year, while 47% intend to maintain their investment pace. Only 11% expect to invest less.