Private credit managers across Asia-Pacific are sharpening their focus on red flags in underwriting as competitive pressure rises. Investors and lenders are recalibrating around protections, collateral strength and disciplined structuring.
With private credit no longer a niche investment strategy, but a core component of institutional portfolios worldwide, Macquarie Asset Management explores direct lending and infrastructure debt, including their distinctive features, trends fuelling their growth and the reasons these approaches are gaining traction among investors in Asia.
The Dinesh Hinduja Family Office is capitalising on India's private credit boom driven by "China Plus One" manufacturing relocations and regulatory changes that have created significant opportunities in the underserved small and medium enterprise market.
Credit events can happen when monetary policy shifts from very accommodative to a more restrictive stance such as the case over the past few years. The key to distinguishing assets such as true private credit from the broadly syndicated loan market, is understanding structures, underwriting standards and manager incentives, according to Tim Warrick, managing director, and head of Principal Alternative Credit.
Private credit managers across Asia-Pacific report strong demand from mid-market corporates and sponsors seeking bespoke solutions. Investors, meanwhile, are becoming more selective, favouring structured protection and asset-backed stability over pure yield.
For structural and cyclical reasons ranging from yield to long duration cashflows to diversification to capital efficiency, investment grade (IG) private credit should be increasingly appealing to insurance portfolios in Asia, says James Hayes, head of the insurance client team for L&G Asset Management.
The rapid growth of the private credit market signals an asset class here to stay for institutional investors, say Laura Parrott, Head of Private Fixed Income, Nuveen.
Export Finance Australia (EFA) will provide up to $175 million for IFM Investors’ private credit capabilities to partner with businesses in fast-growing region.
In the dynamic landscape of global fixed income (FI) markets, understanding the key drivers and effectively navigating volatility are crucial for achieving resilient returns – especially in today’s era, says Pilar Gomez-Bravo, co-chief investment officer, FI, at MFS Investment Management.
Singapore-based Racson Capital is building disciplined, conviction-driven investing in private credit and real estate, with a special focus on Australia.
Growing allocations to private credit are helping Asian insurers sustain product returns, but BOC Life warns that exit risks and the need for diversification remain underappreciated as inflows accelerate.