Private credit needs a secondary market

PRIVATE credit has been growing exponentially across the Asia-Pacific (Apac) over the past five years, and is estimated to reach close to US$100 billion in assets under management (AUM) by 2027, up 46 per cent from 2024, said the Alternative Investment Management Association (Aima).

In Singapore, where investors gravitate toward income-generating assets and have a deep cultural preference for stability, private loans with floating-rate yields have been particularly attractive.

As interest rates settle at structurally higher levels and global banks continue their retreat from middle-market lending, private credit has positioned itself as a major alternative to traditional fixed income.