StashAway, an investment platform serving both retail and professional investors in Asia, has expanded its private markets offering in Hong Kong with two new semi liquid portfolios: Private Infrastructure and Private Equity.

These portfolios provide higher liquidity than traditional funds and give professional investors access to institutional class private market investments from Hamilton Lane, a global private markets specialist managing more than US$956 billion (HK$7.47 trillion) in assets.

Currently, more than 87% of companies generating over US$100 million (HK$781 million) in revenue are privately held, a trend expected to continue as private markets are projected to triple in size over the next decade.

As more companies remain private, high net worth individuals are increasingly looking to private markets as part of long term wealth building.

Private infrastructure and private credit, with target returns of 10% to 12% per annum at the asset class level, are receiving growing attention.

Stephanie Leung, Chief Investment Officer at StashAway, said:

“While public markets continue to face uncertainty, the private market sector is thriving as investors in Hong Kong seek better returns, even in turbulent times. High net worth individuals are desiring greater access to these opportunities but with added diversification, lower volatility, and higher returns. While traditional private market funds require high minimums and long lock ups, our new semi liquid portfolios break down these barriers with lower minimums, cost effective fees, and monthly liquidity.”

Unlike traditional private market funds that typically involve lock up periods of 10 to 15 years, StashAway’s new portfolios provide monthly liquidity after a short initial lock up period.

They also offer significantly lower minimums and fees compared to banks.

While private banks may charge up to 3.5% in total management fees, StashAway clients pay only the fund level fee and a 0.5% StashAway fee.

Private equity and private infrastructure can strengthen long term portfolios by providing diversification away from public markets.

Both asset classes have historically outperformed public equities while showing lower volatility.

For example, adding a 10% private infrastructure allocation to a traditional 60/40 portfolio between 2014 and 2024 would have increased returns by 5.3% and reduced volatility by 10.6%.

The Private Infrastructure portfolio offers exposure across sectors including energy, transport, digital networks, and utilities.

The Private Equity portfolio is diversified across different life stages, geographies, and vintages.

This launch follows StashAway’s introduction of Private Credit in Hong Kong last year, broadening the platform’s range of private market solutions for professional investors.

These investors can also access personalised wealth advisory services through StashAway Reserve, the firm’s dedicated offering for high net worth clients.

Featured image credit: StashAway