A thriving private credit market is in Asia’s best interests

PRIVATE credit would seem to be the hottest topic of the year in the Asian financial markets. Scarcely a week goes by without a senior financial executive proclaiming it to be a “golden moment” for private credit or a major investor increasing allocations to the asset class.

In Asia, the rise of private credit is often seen as a fight for market share between banks and investment funds. That is understandable in a region where banks have traditionally been the primary source of credit for growing businesses, but it is also misleading.

To put it simply: banks and private credit providers focus on different parts of the market. Where there is an overlap, they can still work together in a way that supports Asia’s economic growth and expands the overall market opportunity.