The Monetary Authority of Singapore (MAS) has proposed a Long-Term Investment Fund (LIF) framework to allow retail investors to access private market investments including private equity, private credit, real estate and infrastructure.
Two fund structures are envisaged:
- Direct funds that invest directly in private assets
- Long-term investment fund of funds that primarily invest in private market funds
If implemented, the framework could significantly broaden the investor base for private markets in Singapore.
What will drive success
The framework's viability will hinge on several key factors:
- Manager quality and track record: Retail investors prefer managers with proven expertise.
- Liquidity management: Redemption terms and secondary market access are key due to asset illiquidity.
- Fund economics: Managers must weigh compliance costs against expected retail capital.
- Regulatory burden: MAS must balance investor protection with commercial feasibility.
If these align, LIFs could become a meaningful complement to institutional fundraising.
Singapore's broader fund strategy
The proposal is part of Singapore's broader strategy to reinforce its position as Asia's leading funds hub. Recent measures — including the introduction of the Variable Capital Company (VCC) regime and targeted tax incentives — have been aimed at attracting global capital and encouraging fund domiciliation.
The proposal also sits alongside MAS' broader capital markets initiatives, including the S$5 billion Equity Market Development Programme announced earlier this year, under which MAS will partner with selected fund managers to invest in Singapore-listed equities to improve liquidity and attract investor participation. The LIF framework could complement these initiatives, potentially paving the way for listed private market funds.
Retail access already exists
Retail access to private markets is not entirely new in Singapore. Structured investment products backed by persified private market assets are already available to retail investors. The success of these offerings demonstrates that, when appropriately structured and designed, there is retail appetite for such investments.
The LIF framework would broaden retail investors' access to private markets to include more traditional strategies, which in turn may draw a wider range of participants.
Why fund managers should watch
For fund managers, the proposed LIF framework represents an opportunity to engage with a sizeable and increasingly sophisticated retail investor segment. It offers scope for product innovation within a regulated structure and the potential to establish early market leadership.
We see this framework being of interest to both Asia-based managers with strong track records who are looking to persify their investor base into the retail sector, as well as global managers who have already delved into the "retailisation" market elsewhere and would like to offer a similar product focused on Asia-based retail investors.
If MAS and fund managers can strike the right balance between commercial viability and investor protection, the regime could become a significant addition to Singapore's investment landscape.
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