Report: Asia-focused fundraising tells a special story

Special situations strategies have garnered over $7bn since 2013, EMPEA reveals.

Direct lending and distressed debt platforms targeting emerging Asian countries have raised the most capital from institutional investors since 2013, according to Emerging Markets Private Equity Association (EMPEA) industry statistics.

Among emerging Asia-focused private credit funds, special situations strategies have attracted the most capital in closed fund terms, garnering over $7.1 billion of institutional capital over the last five years.

A number of the largest investment managers have closed their latest fund vehicles targeting opportunistic credit within the region. Bain Capital held a final closing of its latest Asian debt fund, Bain Capital Special Situations Asia, at $1 billion in May. BlackRock also has a new fund, BlackRock Asia-Pacific Private Credit Opportunities Fund I, with an initial target size of $500 million, according to PDI data.

Private debt strategy continues to gain traction as asset allocators plan to expand private credit investments over the next two years, the EMPEA reports show.

More institutional capital is expected to move into private credit funds in emerging Asian countries, as the percentage of global investors who plan to start or expand its private credit investments has been rising up to 47 percent since 2016.

Among all institutions who indicated that they plan to begin or expand investing in private credit, government agencies and development finance institutions showed the largest planned allocation to private credit strategy, accounting for 72 percent across four institutional groups, including pensions, private foundations and family offices, and financial institutions – banks, insurers and asset managers.

Notably, respondents from insurers, banks and asset managers’ group demonstrated less interest with 18 percent in planning to begin or expand private credit investments.