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
THE Asia-Pacific’s (Apac) private-credit ecosystem is undergoing a quiet but powerful transformation that could redefine how the region’s companies access growth capital.
While just 6.6 per cent of the global US$1.5 trillion private-credit pool was attributed to Apac as at end-2023, the pace of expansion is striking. Private credit’s assets under management in the region is projected to rise from US$59 billion in 2024 to US$92 billion by 2027, a 16 per cent compound annual growth rate, according to a recent report from the Alternative Investment Management Association.
The implications are significant for companies, institutional investors and the future of corporate finance across the region.
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