Asia avoids US-style crowding in private credit, says Lighthouse

Private credit in Asia is shifting from a niche alternative to a vital pillar of corporate finance

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Published Tue, Mar 24, 2026 · 05:21 PM

$Funds deployed to private credit in the Asia-Pacific are a small fraction compared with those allocated in the US, despite the region being the engine of global growth.$

Funds deployed to private credit in the Asia-Pacific are a small fraction compared with those allocated in the US, despite the region being the engine of global growth. PHOTO: TAY CHU YI, BT

[SINGAPORE] The rush of capital into US private credit may end up producing more “losers” than investors anticipated, but current stresses aren’t endemic to the asset class or shared in Asia, according to Singapore-based Lighthouse Canton that manages its own debt funds.

“The US market has become extremely crowded,” according to Sanket Sinha, a managing director at the money manager in a statement. “You inevitably end up picking more losers than you can afford when too much capital is chasing the same opportunities.”

By contrast, funds deployed to private credit in the Asia-Pacific are a small fraction compared with those allocated in the US, despite the region being the engine of global growth. Lighthouse Canton’s views echo other voices that Asia private credit funds are emerging as an alternative in the turmoil gripping the US$1.8 trillion industry.

While Asia isn’t totally insulated from the broader stresses, it may be better positioned to withstand the turbulence building elsewhere, due to lower exposure to the software sector that is under pressure from AI and having mostly closed-ended funds, according to regional private credit executives.

Private credit in Asia is moving from being a niche alternative to an essential component of corporate financing as commercial banks pivot increasingly to only the largest borrowers, and offers investors an opportunity to benefit from “pricing inefficiencies,” according to the firm.

Spreads for private credit in Asia remain approximately 200 to 300 basis points higher than on equivalent Western debt, it said.

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Most private credit products are only available to professional investors, defined as those with portfolios of at least HK$8 million in Hong Kong.

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Stella Lau, managing director, wealth management (Greater China), Lighthouse Canton (left); and Charlene Lin, managing director, strategic growth (North Asia and Southeast Asia), Lighthouse Canton (right).

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Lighthouse Canton has said it aims to double its assets under management to US$10 billion by 2027. BLOOMBERG

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Private credit Lighthouse Canton Asia-Pacific

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