Asia: Junior lien in demand

Global investors’ appetite in Asia focuses mostly on mezzanine and subordinated debt, followed by distressed debt, PDI data shows.

Global investors targeting illiquid credit in Asia-Pacific are seeking assets across corporate debt, infrastructure debt and real estate debt, our data shows. Corporate private debt strategies are the most in demand with 199 institutions showing an interest.

Subordinated and mezzanine debt strategies are most in demand, accounting for 35.2 percent of total appetite, as per private debt fund commitments from 272 limited partners tracked by PDI as of end-October.

Distressed debt accounts for 33.4 percent of total appetite for illiquid credit in Asia-Pacific, followed by distressed debt, senior debt, fund of private debt funds, unitranche and venture debt, the data shows.