Private Debt Investor’s Asia-Pacific report finds foundations for long-term growth withstand a drop in dealflow
Asia-Pacific has grappled with a challenging fundraising environment over the past couple of years, but local market players say that opportunities still abound for firms able to look past short-term tumult in the region. In this special report, we take a look at how APAC is well placed to benefit from the flexible lending solutions that private credit offers, and how the region’s different geographies can offer unique investment opportunities for LPs looking for attractive risk-adjusted returns.
INSIDE THE ASIA-PACIFIC REPORT
Asia-Pacific fundraising is playing the long game
Fundraising for Asia-Pacific has been extremely challenging over the past two years, but the foundations for long-term growth are strong.
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The uncertainty around China’s economic outlook is by no means dimming the other bright spots in Asia’s dynamic private credit landscape. Fuelled by the region’s robust GDP growth, the opportunity set for lenders now extends far beyond the distressed debt space, with more mature markets such as Australia offering compelling prospects.
How are horizons shifting for Asia’s private debt landscape?
Opportunities are opening up for private credit investors in markets such as India and Australia, but domestic banks are fighting back in Southeast Asia.
China focus: LPs tread carefully on Chinese private debt
Investors are understandably nervous about Chinese private credit, but there are still opportunities for those willing to seek them out.
Tough fundraising market belies belief in Asia
The headline figures may look grim, but sentiment is becoming more optimistic on APAC private debt.
LGIM: Seizing the ESG opportunity in private debt
Emerging markets are proving it is possible to make responsible and sustainable investments over the cycle and see a genuine impact, says Nicholas Bamber, head of private credit at LGIM Real Assets.
Huatai International on the emerging opportunities in Asian private credit
With a robust economic outlook despite elevated interest rates, prospects for APAC private credit remain strong, but international LPs are still underallocating to the asset class, say Huatai International’s
Ryan Chung and Isaac Wong.
Whether it was covid lockdowns, geopolitical tensions or China’s lending woes, the Asia-Pacific region has had its fair share of upheavals and uncertainty over the last few years. But there’s a growing consensus that the region is slowly regaining its emerging opportunity status for private debt. Our APAC report looks at the trends set to dominate the agenda over the next 12 months and what it takes to build a pan-Asian strategy.
Five key trends shaping private credit in Asia-Pacific
Fundraising slumped in H1 but opportunities are emerging outside China.
MaxCap: Australian real estate offers a scalable, sustainable opportunity
Allocations to private credit backed by real estate are growing in Australia, especially for commercial property, say MaxCap’s Wayne Lasky and Bruce Wan.
APAC private debt fundraising falters as LPs reassess risk
Private credit is making inroads in Asia but global investors need more convincing.
Metrics Credit Partners: Investors warm to Australian private debt
Strong returns are achievable in Australia for fund managers with good track records, in-depth local knowledge and deep relationships
How to build a pan-Asian private credit strategy
To make the most of Asian private debt, a manager must be nimble and move as the opportunities evolve.
Tor Investment Management: Private credit opportunities abound in Asia-Pacific
Outside China, there are solid grounds for optimism in Asia-Pacific markets, say Tor Investment Management’s Patrik Edsparr and Chris Mikosh.
Asian managers sharpen their ESG focus
Asia still lags behind the US and Europe on sustainability criteria but there are definite signs of progress
More Japanese LPs are betting on red
An expanding pool of Japanese investors have conviction in high-risk distress – a significant development for the country’s LP base.
APAC Forum 2023: demand for private debt ‘will only increase’
In the keynote speech on day one, Cheng Khai Lim of the Monetary Authority of Singapore outlined some of the opportunities and challenges for the asset class in the region.
APAC Forum 2023: the SMEs that are ‘hard to kill’
A lack of financing in the past has made small businesses in southeast Asia resilient, a characteristic welcomed by the private debt managers now stepping into the funding gap.
Reflections on Singapore’s key talking points
Last week saw the Fairmont Singapore play host to our 2023 APAC Forum, with a record number of delegates keen to discuss the growth of private debt in the region.
Private debt is undergoing something of a repositioning in Asia. Long regarded in the region as a distressed strategy, debt is regarded as a more versatile tool that can provide the capital to support growth in Asia’s emerging economies. In our PDI Asia-Pacific Report 2020, we find out how covid-19 could end up accelerating the existing trend where owner-managed businesses look beyond banks or private equity funds for alternative forms of financing.
Key trends: All indications are that private debt is set for growth in Asia
After initial coronavirus-related fallout, the asset class looks to have rosier days ahead.
KKR: Asia is not all about distress
Distressed and special situations have been the focus of Asia-Pacific private debt markets, but Brian Dillard of KKR highlights an opportunity to back a wider universe of companies.
How Asia is learning to love private debt
With investors queuing for opportunities and asset managers battling for talent, Asia-Pacific private debt is hot right now. Joe McGrath asks what this means for the next part of the region’s growth cycle.
Muzinich & Co: How the private debt market in the Asia-Pacific region is evolving
With banks retrenching from lending to mid-market companies in various Asia-Pacific jurisdictions, there may now be an opportunity for investors to benefit. We asked Andrew Tan, head of Asia-Pacific private debt at Muzinich & Co., about the pace of change in this evolving market.
Regulators tighten the screws
The growing demand for private debt in Asia is prompting regulators to home in on credit funds.
Sanne: Asia ripe for private debt growth
The number of credit funds active in Asia-Pacific has taken off in the last five years, and the region’s pandemic experience looks like it will only accelerate that trend, according to David Fowler, country head of Singapore at Sanne.
Could private debt bridge Asia’s funding gap?
The lightning-quick response to covid-19 by many of the region’s governments could bode well for Asia-Pacific’s burgeoning credit market.
Pierfront: Reaping the benefits in Asia
As a private debt market, Asia-Pacific has a lot to offer with opportunities to capitalise on a funding gap in real assets, says Stéphane Delatte, CEO of Pierfront Capital.
LATEST APAC NEWS
KKR closes Asia credit fund with $2.5bn
The fund will follow its predecessor in backing performing credit opportunities driven by the region’s rapidly developing economy.
Asian insurer AIA hires new investment consulting head
The appointee joins from rival firm FWD following the previous incumbent Phil Joubert’s move from AIA to Oaktree Capital Management last year.
DOWNLOAD: Fundraising hits new high in 2025
Fundraising hit a new record in 2025, but only just!
Rise of the robots: AI in private credit
Credit managers have been experimenting with AI in 2025, with many expecting it will become an integral part of the private credit landscape in the near future.
Specialisation and mega deals set to define market in 2026
Firms are bifurcating towards either serving large private equity-backed deals or looking at more niche specialist concerns in order to stand out in a competitive market.
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