Industry players see room for private credit market to grow in South-east Asia

[SINGAPORE] Private credit funds, where investors pool their capital to enable the fund manager to provide loans to companies, are seeing greater interest in South-east Asia, with regional governments also starting to jump on board.

For example, Singapore in its Budget in February announced a new S$1 billion Private Credit Growth Fund to provide more financing options for high-growth local enterprises.

Across the region, sovereign wealth and pension funds are also mulling the potential of building private credit platforms to source for deals.