Private credit

The idea of committing capital for five to seven years without an exit option feels uncomfortable to many.
INSIGHTS FROM CFA SOCIETY SINGAPORE

Private credit needs a secondary market

Such markets address illiquidity fears known to plague investors in Singapore and the Asia-Pacific

The market for private credit is an estimated US$40 trillion. It is a big engine for the economy that fuels innovation, growth and the industrial renaissance.

Private-credit fears are based on four myths

The growth of private credit in all forms has actually made our financial system more resilient and less concentrated

BlackRock’s move to recycle capital from its APCO II fund comes after it paused fundraising for a planned third Asian private credit strategy earlier this year.

BlackRock seeks one more year to deploy Asia private credit fund

The asset manager seeks more time for APCO II as it moves to deploy about 40% of the portfolio

Some ultra-wealthy individuals are curbing AI bets, however, amid concerns over booming valuations that have turned Nvidia into the world’s most valuable company.

Asia tycoon backs US$1.5 billion AI bet with private credit fund

Koo Sr is a fourth-generation member of the Koo dynasty and controls a stake worth more than US$400 million in Chailease

Apac is in the midst of one of its strongest corporate expansion cycles in decades. Demand for capital is intensifying.

Asian private credit – an attractive risk-reward opportunity

While such deals in region need structuring expertise and local insight, they also offer better yields with protections not commonly found in West

“There is some frothiness in the private sector,” Nu Holdings co-founder and Colombian tycoon David Vélez said.

Finance billionaires warn of rising private credit market risks

Recent high-profile US bankruptcies may signal broader credit troubles in the financial system

DWS has cut the small team in recent weeks in Asia because the region remains less mature and structurally challenging compared with the firm’s stronghold in Europe.

Deutsche Bank’s DWS cuts Asia private credit team: sources

Despite the retreat from Asia private credit, DWS sees alternatives driving growth and plans hires in Singapore

HSBC plans to conduct a short, internal selection process for the new head of the global credit and financing business.

HSBC overhauls trading business in bid to become debt powerhouse

The firm will merge Group-of-10 rates trading unit with FX, EM rates and commodities desks into a new global macro division

KKR oversees US$315 billion in credit assets globally including liquid strategies, as at September.

KKR targets December close for second Asia private credit fund

Asian borrowers remain highly price-sensitive, often opting for bank loans that are typically 200 basis points to 400 basis points cheaper than private debt