APAC institutional investors search for strategic partners to future-proof capital
Asia-Pacific enters 2026 as one of the world’s most resilient investment regions, with stable growth, easing inflation and strong momentum across technology, consumer, energy and other sectors. In this one-on-one session, Franck Dubois, Head of Asia-Pacific, Securities Services at BNP Paribas, discusses the lay of the land for institutional investors and how they can best unlock opportunities in this diverse and vibrant region.
How are APAC institutional investors reshaping their strategies for 2026, particularly in private capital and alternatives?
Institutional investors across Asia‑Pacific are strengthening their allocation to private markets, alongside local regulatory updates such as those in Australia. The region’s primary investment markets remain Korea, Japan, and Australia – driven mainly by real estate and infrastructure – with India also continuing to attract institutional investors in private equity. Furthermore, liquid alternatives are becoming an increasingly attractive alternative, offering investors the potential to diversify their portfolios and navigate complex market conditions.
While private equity remains core, private credit, infrastructure, and real‑estate assets are gaining prominence as investors seek diversification, income resilience, and more predictable cash flows. Hedge funds, in particular, can provide a unique opportunity for institutional investors to capitalize on market inefficiencies and generate absolute returns, making them an essential component of a well-diversified alternatives portfolio.
Market evolution is also reflected in the structures used for investments. New fund vehicles – such as hybrid fund structure that combine listed and private exposure, evergreen funds, separately managed accounts (SMAs), secondary‑market purchases, and continuation funds – help maintain consistent cash‑flow capacity and mitigate the liquidity challenges inherent in unlisted markets.
With T+1 and other market infrastructure reforms accelerating globally, what operational challenges should APAC investors prioritize?
T+1 settlement is reshaping post-trade operations globally, with particular complexity for Asia-Pacific investors operating across time zones and multiple market infrastructures.
T+1 has already been implemented in India and North America and is scheduled to roll out across 30 European markets in 2027. For APAC investors, this creates challenges around funding predictability, FX execution, cut-off times and coordination across custodians and market infrastructures.
The issue is not speed alone. Shortened settlement cycles reduce tolerance for operational errors, prompting investors to reassess automation levels, straight-through processing rates, liquidity buffers and the resilience of their operating models.
Which APAC markets are standing out today, and what differentiates successful expansion strategies?
Asia-Pacific continues to offer diverse opportunities, but investors are approaching the region with greater selectivity and discipline. Key markets such as Australia and New Zealand remain attractive, particularly for pension and superannuation investors increasing private market exposure. Southeast Asia – led by Singapore – serves as a multi-asset hub for global asset managers and official institutions, while India and Greater China provide strong long-term potential.
As investment strategies become more global and complex, functional capability alone is no longer sufficient. Investors are looking for partners that combine scale, local expertise, strong technology foundations and long-term commitment
What sets successful expansion strategies apart is operating resilience over speed of entry, with investors prioritizing strong local custody networks, robust governance, and seamless cross-border support. In this context, BNP Paribas’ Securities Services business leverages an extensive global and local custody network – holding over 90% of client assets in its own infrastructure across 90+ markets* – to help institutional investors reduce operational risk as portfolios globalize. (*Source: BNP Paribas)
How are data, technology and resilience shaping the future operating model for institutional investors?
Data has evolved from a reporting function into a strategic asset. As portfolios now span both public and private markets, investors are prioritizing data quality, timeliness, and usability over sheer volume. Comprehensive data aggregation across all asset classes is essential, as investors shift from traditional, static strategic‑asset allocation to dynamic, total‑portfolio allocation to guide their investment decisions.
In private markets, data fragmentation remains a challenge, covering capital calls, valuations, ESG metrics, and investor reporting. This drives demand for platforms that can manage the full data lifecycle and support timely decision making.
BNP Paribas’ Securities Services business has invested significantly in data and technology, notably through its Data PRISM360 solution, powered by NeoXam technology. This data management platform is designed to normalize and consolidate investment data across asset classes. We continually invest in technology and digital transformation, underscoring our commitment to data, AI, and platforms that enhance client experience, operational resilience, and innovation.
Looking ahead to 2026 and beyond, what should investors prioritize when selecting strategic partners?
As investment strategies become more global and complex, functional capability alone is no longer sufficient. Investors are looking for partners that combine scale, local expertise, strong technology foundations, and long-term commitment.
In this context, BNP Paribas’ Securities Services business is becoming more relevant. As part of a diversified banking group, it is closely connected with financing, markets and asset servicing capabilities, allowing more coordinated delivery across regions and asset classes.
Ultimately, investors are seeking experienced, risk-aware partners with the reach of a global institution and the responsiveness of a trusted local provider – a balance that will become increasingly important as Asia Pacific continues to evolve.
This article was first published by The Asset.
Franck Dubois is Head of Asia-Pacific, Securities Services, BNP Paribas
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