Chart of the week: South-East Asian private debt attracts attention

Funds focused on the region are off to a strong start in 2016 with capital raised already ahead of 2013.

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This week, the International Finance Corporation (IFC) announced plans to commit $200 million to Myanmar Industrial Port. According to Private Debt Investor, the participation of the IFC helps the country meet its growing need for long-term funding.

The importance of securing debt-financing for infrastructure and real estate developments is not unique to Myanmar, however, so PDI Research & Analytics has taken a look at whether the region is proving attractive to debt investors.

Fundraising by South-East Asia-focused private debt funds increased by 52 per cent between 2011 and 2015, despite a marked decrease between 2011 and 2013 when the region was hit by an economic slowdown.

The first four months of 2016 have shown that recent momentum from private debt fundraising is unfaltering. More capital has been raised this year than in the whole of 2013. Most of this can be attributed to India, which has increasingly become the focus of foreign fund managers and investors.

The four largest funds to close since 2011 have been raised by a single fund manager: Hong Kong-based PAG has amassed $3.92 billion across four private debt funds. The largest of these is PAG Asia Special Situations Fund II which closed last year on $1.4 billion.