The Alternative Credit Council (ACC) has formed a committee in the Asia-Pacific to help support development of private debt provision in the region.
ACC has already been active in the US and Europe and said the APAC group will consolidate its position as the voice of the global private debt sector. ACC Global board members Justin Ferrier of BlackRock and Barry Lau of Adamas Asset Management will co-chair the APAC committee. ACC is an affiliate of the Alternative Investment Managers Association (AIMA).
Legal and regulatory reforms supporting private credit are expected to grow in the Asia-Pacific region as local businesses, regulators, policymakers and investors gain a greater understanding of the asset class, according to the ACC.
The main areas of the focus for the committee will be: advocacy and raising awareness; promoting legal and regulatory reform to support private credit; researching the size of the market and trends in the region and guidance on best practice for managers.
Ker Sheng Lee, co-head of APAC at AIMA, said: “The Asia-Pacific region is undoubtedly receiving much more attention from private credit investors and managers, and the growth potential is considerable.
“But capital-raising across the region is mixed, legal and regulatory frameworks are not uniform and the pool of sponsors, advisors and private credit managers is shallower than in the US and Europe.”
A recent ACC report, Financing the Economy 2017, suggested managers in the region primarily face obstacles raising funds, rather than deal origination, making the market very different from the US and Europe which experienced record fundraising activity in 2017.