Family offices in Asia are getting smarter and more strategic about how they manage and grow wealth across generations. Gone are the days of sticking to public markets and traditional asset classes.
Today, many are turning to SPVs (Special Purpose Vehicles) to unlock access to alternative investments, streamline decision-making, and achieve deeper portfolio diversification.
In this article, we’ll uncover how family offices in Asia are using SPVs to invest smarter across asset classes and transform diversification strategies in the region.
What are SPVs and Their Relevance to Family Offices in Asia
An SPV is a dedicated legal entity designed to hold a specific asset or investments over the long term, enabling precise risk isolation and simplified structuring.
While many Asian families once relied on simple holding companies, often offshore, for privacy and tax reasons, wealth structures have become more complex. As a result, family offices are adopting more agile and institutional approaches.
For today’s family offices in Asia, SPVs offer key advantages:
- Ring-fencing legal and operational risks
- Segregating investment strategies by jurisdiction, tax treatment, or asset type
- Streamlining cross-border investment processes
According to PwC Hong Kong, “Family offices have evolved significantly over time, adapting to changing macroeconomic, societal and technological landscapes… with some becoming sophisticated organisations providing a holistic platform encompassing an array of financial and non-financial services.”
Looking to modernize your family office structure? Talk to one of our experts to discover how SPVs can support your investment goals with efficiency and flexibility.
Why Diversification Matters More Than Ever for Family Offices in Asia
Diversification isn’t just an investment buzzword. It has become a strategic necessity. With rising market volatility, geopolitical tensions, and shifting generational preferences, family offices in Asia are rethinking how to protect and grow wealth.
Singapore, in particular, has emerged as a magnet for family offices. Backed by progressive regulation, strong governance, and a robust financial ecosystem, it offers a stable launchpad for regional and global diversification.
Between 2023 and 2030, $5.8 trillion in wealth is expected to shift between generations in Asia-Pacific, according to McKinsey. This transition is accelerating demand for institutional-grade investment vehicles and structures.
Key diversification drivers:
- Evolving Family Needs
- Generational shifts: Younger family members favor ESG, tech, and impact-driven investments
- Complexity: Families now span jurisdictions and lifestyles, requiring bespoke strategies
- Global Investment Landscape
- Geographic spread: Investing across Asia, Europe, and the Middle East helps reduce regional risks
- Sectoral variety: Moving beyond public equities into venture capital, renewables, and fintech
- Enhanced Access to Alternatives
- Family offices are allocating more capital to private equity, real assets, and venture funds. These asset classes offer long-term upside and insulation from public market shocks.
- Governance and Control
- Diversified structures help navigate succession planning, legal exposure, and family governance frameworks
How Family Offices in Asia Use SPVs to Access Private Market Opportunities
The rise of SPVs among family offices in Asia is not accidental. It is strategic. SPVs give them a clean, cost-efficient way to participate in exclusive private deals, co-invest alongside peers, and remain agile in fast-moving markets.
Here’s how they are used:
- Private Equity and Venture Capital: SPVs allow families to invest directly in growth-stage companies without tying up core capital
- Real Assets and Infrastructure: A single SPV can house one large real estate deal or infrastructure project
- Club Deals and Co-Investments: Family offices often pool resources via SPVs to invest alongside trusted partners while maintaining governance control
According to LH Koh, Head of Global Family and Institutional Wealth for APAC at UBS, “With prolonged low interest rates over the past decade and continued volatility in public markets, Asian family offices and HNW investors are increasingly turning to private markets for enhanced returns and diversification.”
SPVs offer transparent structures, legal clarity, and co-investment flexibility tailored for private markets.
Looking to co-invest in private deals without operational complexity? Auptimate’s SPV platform makes it seamless to launch, manage, and close SPVs that are compliant, efficient, and tailored to your strategy.
Key Benefits of Using SPVs for Diversifying Investment Portfolios
A well-structured SPV allows families to scale their investments while reducing risk exposure. Some of the main advantages include:
- Legal protection: Isolates liability from personal or other family office assets
- Tax efficiency: Offers flexibility to select jurisdictions aligned with the family’s tax strategy
- Portfolio customization: Each SPV can be tailored to fit different sectors, timelines, or co-investment terms
- Cross-border ease: Simplifies investing in foreign markets, especially in deals requiring local regulation alignment
Many family offices in Asia choose SPV structures based on tax treatment, familiarity, and cost. While offshore jurisdictions remain significant, some are turning to transparent and streamlined vehicles that reflect today’s compliance standards.
Common SPV Structures Favored by Family Offices in Asia
Family offices in Asia often choose SPV structures based on familiarity, tax treatment, cost, and local expertise. While “SPV” refers to the function of the entity rather than a specific legal form, some jurisdictions have become synonymous with certain SPV setups due to their regulatory frameworks and long-standing market use.
Common legal entities used as SPVs by family offices in Asia include:
- Singapore Private Limited (Pte. Ltd.): Commonly used for SPVs involving direct investments, co-investments or one-off private market deals. Beyond its ease of management, the Singapore Pte. Ltd. also offers solid legal protections and benefits from Singapore’s globally trusted regulatory and financial system.
- Cayman Segregated Portfolio Company (SPC): Traditionally favored for flexibility, especially in private equity and venture capital transactions, though they are increasingly under global regulatory scrutiny
- BVI: The British Virgin Islands offers straightforward incorporation processes and confidentiality features, making it a go-to for single-deal SPVs. However, like the Cayman model, it is facing increasing pressure from international tax and transparency regimes.
The right SPV structure should reflect the family’s unique investment goals, tax residency, and governance requirements.
Final Thoughts
Family offices in Asia are entering a new era of investing. It is defined by cross-border reach, alternative assets, and tailored structures. SPVs are not just tools. They empower smarter, more agile, and risk-conscious diversification. By using the right structure, families can access top-tier opportunities while preserving capital across generations.
Thinking of using SPVs to future-proof your family office? Book a call with us or get in touch with us at info@auptimate.com, and one of our experts will be more than happy to help.
