Product innovation and new technologies are accelerating the democratization of private markets, according to State Street’s new report, 2025 Private Markets Outlook: Driving success in volatile environments. The report reveals the biggest trends affecting institutional investors in Singapore, drawing on our latest global survey of 480 investment firms.

We focus on three crucial themes, each of which has implications for the future of private equity, private credit, real estate and infrastructure.

The democratization of private markets: The survey highlights a shift toward retail-like products in private markets. Singapore’s respondents were exceptionally bullish on this trend: 70 percent of them say that at least half of private markets fundraising will come through such products in as little as two years’ time.

Several developments are necessary to unlock growth in the semi-liquid fund space. Product innovation is key, according to 40 percent of institutions in Singapore. Examples include ETFs like State Street Global Advisors’ PRIV,¹ a private credit ETF that provides retail investors with improved access to private assets.

Technology-driven improvements in data access and management are also needed, as is the right regulatory framework. In March 2025, the Monetary Authority of Singapore issued a consultation paper seeking feedback on a proposed framework to allow retail investors access to private markets investments through authorised long-term investment funds.²

A focus on quality: The shift from quantity to quality is now entrenched in investment strategies. Private market investments are seen as a way to manage risk, for example, with 62 percent of institutions in Singapore increasing their private equity allocations as a strategy to enhance diversification.

The emphasis on quality can also be seen in a shift in capital allocation plans from emerging to developed markets. Developed Europe is getting more attention, with 63 percent of limited partners (LPs) in the survey planning investments in this region within the next two years (up from 43 percent in 2024). By contrast, North America is by far the top priority market for investment in Singapore, followed by developed APAC. Further evidence of the focus on quality is seen in the fact that emerging APAC saw a decline in investment interest, with only 14 percent of LPs planning to invest in the region, down from 25 percent in our 2024 research.

AI adoption in private markets: The AI revolution is already underway, and institutions in Singapore are among the earliest adopters. Almost nine out of ten (87 percent) of Singaporean respondents recognise the opportunity to use GenAI-based large language models to make better use of their unstructured information.

The report goes on to explore why private markets are proving to be resilient at a time of increased market volatility and geopolitical uncertainty, as well as which private asset classes are most likely to benefit from the three trends outlined above.