Budget 2025: S$1 billion private credit fund will help high-growth companies bridge financing gaps

• Private Credit Growth Fund to provide more financing options for high-growth local enterprises
• Private credit market has gained traction globally
• However, few of these funds focus on Asia

SINGAPORE’S introduction of a S$1 billion Private Credit Growth Fund will help local enterprises seeking to raise capital – without borrowing from banks or selling equity – access a fast-growing source that is still nascent in Asia, market participants said.

Finance Minister Lawrence Wong announced the fund in his Budget speech on Tuesday (Feb 18), adding that it will “provide more financing options for high-growth local enterprises”.

Wong, who is also prime minister, noted that the private credit market has gained traction globally. However, few of these funds focus on Asia, and much less on Singapore-based enterprises.