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Slowdown in the private equity (PE) activity in Asia-Pacific isn’t due to a lack of opportunities or interest but a market recalibration.
Private credit is a nascent asset class in the Asia-Pacific region, with tremendous growth potential and opportunity for investors. Tighter credit markets, constrained bank lending, a need for more flexible capital solutions and concerns around equity valuations have created a greater appetite for private credit funds in the region. While private credit fundraising witnessed a decline in 2023, in line with the global trends, attractive opportunities can be found within secured lending, mezzanine and special situations verticals. In all, 14 funds raised US$3.4b for Asia-Pacific private credit in 2023.