Wealthy clients increasingly tap private market funds: OCBC

Bank expanding offerings amid rising demand for alternative investments

- Sheila Chiang Business Correspondent

OCBC Bank's high-net-worth clients are increasingly investing in private market funds amid a rising demand for alternative investments.

To capture the momentum, the bank is expanding the suite of private market funds and exploring offering other types of alternative investments such as tokenised assets.

Accredited investors in the retail banking space - those who have net personal assets exceeding $2 million, among other criteria - are tapping alternative investments, such as private market funds, as they seek to gain investment access to assets other than the conventional categories of stocks, bonds and cash.

Alternative investments are used to diversify a portfolio and can potentially offer protection against market downturns.

Speaking to The Straits Times, OCBC head of group wealth management Tan Siew Lee said: "Accredited investors are gaining exposure into alternatives that are traditionally less correlated with the traditional asset classes."

Assets under management (AUM) of private market funds tripled from August 2024 to August 2025.

Currently, only accredited investors with an aggressive risk profile can access private market funds, because of the sophistication and risk levels associated with them.

Private market funds are not as liquid as the traditional unit trust. "If you need money, it's quite difficult to sell," she said.

The bank is looking to expand the types of private market funds being offered, from private equity to private real estate and private infrastructure.