Highlights from Endowus Private Markets & Hedge Funds Symposium: Part I

Industry estimates projected that private market assets under management are expected to grow at more than double the rate of public assets, potentially reaching US$60-65 trillion by 2032, research by Bain & Company shows. 

At Endowus, our role and experience as a digital wealth platform are more important than ever in powering the technology to simplify access to private and illiquid assets for individuals, institutions and family offices.

We gathered the key takeaways from the second edition of the Endowus Private Markets & Alternatives Symposium 2025 in a two-part series.

Opening by Endowus Co-founders

• Endowus gets its name from “Endowment investing for all of Us.” And, what “all of us” means is truly delivering our unique business model to everyone. 
• Five years ago, we started as a platform for individuals and families. We have since moved into the institutional space, providing not only access to funds with the lowest cost possible, but also bespoke solutions and outsourced CIO services for single-family offices, multi-family offices, corporates, and non-profits including charities, churches, foundations and school endowments.
• We work with more than 90 of the best fund managers in the public and private markets and alternatives. With these building blocks in place, we can create portfolios tailored to your specific goals – such as short-term Liquidity, Lifestyle, Longevity and Legacy. We know that over time, more than 90% of the returns can be attributed to asset allocation. This is the institutional framework of liability-driven asset allocation​​. 
• Endowus is solving for the access, and advice, always lowering the minimums and offering lower transparent and clean funds with no sales charges, no loaded fees, and a 100% rebate of retrocession trailer fees back to the client. Not keeping a single cent of incentives paid by the managers, we can therefore always do what is right for our clients and their best interest.

Becoming accredited investors in Singapore: Unlock exclusive investment solutions

‍Hedge Funds: What constitutes a successful investment?

• A core benefit of hedge funds is their potential to deliver returns that are not closely tied to traditional markets. This lack of correlation can reduce overall portfolio volatility and enhance risk-adjusted performance, especially during market downturns.
• While hedge funds often carry higher fees than long-only strategies, these fees must be justified by the generation of alpha by skilled managers. The question is not whether to pay the fee or not, but rather the need for genuine differentiation that cannot be achieved independently. The key is to identify top-quartile firms and funds that excel in areas that are challenging for individual investors to navigate on their own. This includes managers’ ability to generate sustainable and uncorrelated returns.
• Leverage can be a powerful tool for enhancing returns, but it also amplifies risk. The key is whether or not the underlying strategy is robust enough. Regardless of the level of leverage employed, the strategy is failing to deliver the intended results of generating excess return. Successful hedge fund managers should establish a well-defined risk management framework to optimise risk-adjusted returns. 

How hedge funds ride through market volatility

• Credit strategies have a unique avenue to generate alpha. The devil lies in the details, with significant importance placed on thorough underwriting and the intricacies of loan and bond documents. The lesser liquid credit market offers less liquidity, creating better opportunities for alpha in hedge fund credit strategies compared to daily liquid fixed income and equity products.

• AI and advanced technologies support a greater spectrum of the investment process and can increase productivity. Human judgment and experience remain indispensable for achieving superior returns in the hedge fund space. This includes skills such as interpreting market dynamics to identify investment opportunities and managing risk effectively. 

A reflection on private equity — New opportunities & challenges

• To ensure strict discipline on growth, avoid heavy concentration on a single vintage year. Moreover, vintage diversification can be challenging for individual investors, as it requires a significant amount of time to execute.
• Private equity funds were not designed for liquidity, and their illiquidity could potentially generate greater returns, which many refer to as illiquid premiums, compared to daily-trading liquid assets. As the investor base has widened and demand for liquidity increased, secondary transactions become crucial for providing liquidity to the illiquid investment. 

What are secondary investments in private equity?

• In the past, discounts played a significant role in the value provided by secondaries. As the market has matured, the focus has shifted towards acquiring the best funds from top managers, rather than solely seeking discounts. It also allows investors to exit old investments while still holding onto their best-performing ones. 
• Diversification is important for every portfolio, as each asset class has a role to play. In terms of performance drivers, private credit offers a base rate plus a spread of 5%, which is highly dependent on the current high base rate. The direction of rates is expected to decline in the next two to five years. Meanwhile, the upside potential of private equity cannot be replicated in private credit due to the controlled ownership structure, which allows managers to navigate and capitalise on changes, ultimately creating value, exiting investments, and delivering returns. 

‍Join our next exclusive Endowus Private Wealth event

On the back of an increasingly growing client interest amid the backdrop of financial innovation, the Endowus Private Markets & Alternatives Symposium 2025 was held at Marina Bay Sands Expo and Convention Centre.

A record turnout of more than 700 verified accredited investors and industry partners demonstrates the strong interest and the power of innovation in the alts space. Want to learn about Endowus Private Wealth and be present in our next industry-leading wealth event? Schedule a call with our client advisors.

Read more:

• ‍Are evergreen funds really the future of private market investing?
• ‍Private markets and hedge funds: The how and when of diversification
• ‍Highlights from the Endowus WealthTech Conference 2024 (Part I)
• ‍Key takeaways from the inaugural Endowus Private Markets & Hedge Funds Symposium

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