The private credit market has almost tripled in size to $1.5 trillion over the past decade following a series of interest rate hikes that has helped floating-rate debt take Wall Street by storm.
The demand from pensions and sovereign giants has prompted global and regional fund managers to replicate similar strategies in regions outside of North America and Europe in recent years.
Rising interest in private credit strategies dedicated to the Asia-Pacific region has paved the way for general partners (GP) to expand their product offerings through new fund franchises and the acquisition of stakes in their peers to gobble bigger fees and tap new client pools this year.
The growth in assets under management of private debt in APAC has outpaced other regions, rising by 19.5% from 2020 to 2023, compared with the global average of 11.5%, show latest data from Preqin. At $99.3 billion, the AUM of private debt in the region now accounts for 6.6% of the global AUM at $1.5 trillion.
Private debt AUM by region
Excluding funds denominated in RMB; Source: Preqin
With the niche corner of alternative financing going into overdrive in the East, DealStreetAsia has put together three key fund-level themes that have played out this year before 2024 draws to a close.
