Driving the next phase of Asia Pacific’s secondaries market from Singapore

Singapore has a reputation for seizing new economic opportunities, and the growing secondaries market in Asia Pacific presents a new frontier for financial growth and innovation.

While the global secondaries market reached USD152 billion globally by 2024 and is projected to hit between USD180 billion and USD220 billion by 2026,¹ Asia Pacific's potential remains largely untapped.

As liquidity needs increase and private market participation broadens across the region, this is a timely point for Singapore to reflect on how it can build on its existing asset and wealth management strengths, including the continued development of supporting market infrastructure, to play a more active role in shaping the development of the secondaries market in Asia Pacific.

At their core, secondary transactions provide liquidity solutions for Limited Partners (LPs) and General Partners (GPs), enabling investors and fund managers to divest from illiquid positions as market conditions or portfolio needs change. Infrastructure, including platforms and exchanges for private assets, can help strengthen these solutions by improving access, efficiency and transparency.

These benefits align closely with asset and wealth management trends unfolding across Asia Pacific, and in Singapore in particular, where rising wealth levels and growing demand for private market assets are driving increased exposure to private equity.

Singapore sits at a pivotal point within Asia Pacific. In recent years, strong growth across its private markets ecosystem, alongside the emergence of new platforms, has reinforced the city-state’s attractiveness as a hub for fund managers seeking to tap global wealth and establish family offices. Initiatives focused on private credit and tokenisation, including developments led by players such as ADDX, a Monetary Authority of Singapore-regulated digital private markets platform, are further reinforcing Singapore’s position.

Building on these strengths, Singapore can pursue several practical actions to cement its role in Asia Pacific’s secondaries boom. One such action is the continued evolution of regulatory frameworks to support tokenisation and digital platforms. This can draw on local experience, including that of ADDX, as well as market-led solutions like Palico, a digital marketplace for LP-led secondaries.

The regulatory approach can also reflect overseas policy experiments, including the UK’s Private Intermittent Securities and Capital Exchange System (PISCES) platform. Clear and consistent regulation can help ensure the effective execution of secondary transactions while reinforcing trust and transparency.

There is also scope to more actively promote secondary markets across private credit, infrastructure and private equity. Singapore’s existing strengths mean it is well placed to address illiquidity concerns and encourage GP-led structures, attracting greater activity. Making this easier in practice will depend on having the right people and a well-connected industry set-up.

In this context, industry bodies such as the Investment Management Association of Singapore (IMAS) and the Singapore Funds Industry Group (SFIG) can provide a practical channel for industry collaboration and engagement with regulators.

Cross-border partnerships represent another important lever. Markets such as Australia, Hong Kong, India, Japan and South Korea are seeing strong private market growth. Closer cooperation can help capture transaction flows and position Singapore as a gateway for regional secondaries activity.

Against this backdrop, the emergence of dedicated secondaries platforms globally raises the question of whether Singapore could support the development of one locally. A well-designed platform would bring buyers and sellers together, enabling GPs and LPs to list holdings, express interest and transact efficiently. Over time, integrating capabilities such as Know Your Customer (KYC), independent valuation, operational due diligence and legal services could help create a more comprehensive destination for secondaries market activity.

If such a platform were to be developed, governance would be a key consideration. Day-to-day operations should sit with market players, allowing the platform to respond to evolving needs and market trends. This should be balanced with appropriate safeguards around trust and security, including the management of conflicts of interest, to ensure transactions are conducted transparently and fairly.

By building on its existing strengths and addressing these strategic considerations, Singapore is well positioned to assert itself as a focal point of Asia Pacific’s emerging secondaries market. Doing so would further reinforce its standing as a global asset and wealth management hub and strengthen its reputation as a forward-looking financial centre capable of shaping the region’s next phase of private market development.

_{¹ Lazard private capital advisory: Secondary market report 2024, Lazard, 23 January 2025}