Dry powder has been slow to deploy amid lower interest rates pre-2022, the pandemic and difficulty in finding deals, industry insiders told AsianInvestor.
Amid market volatility and tightening monetary policies, investors are turning to private credit, investment-grade bonds and value equities in developed markets.
With the 60/40 allocation a thing of the past, investors are looking to alternative assets for higher yield, inflation hedging, and portfolio diversification.
Driven by market volatility and the search for higher yields, family offices are raising allocation to alternative assets.
Real estate and private equity are the most common alternatives that institutional investors allocate to, but private credit is fast closing the gap, according to a recent survey by Nuveen.
Asset owners are spoiled for choice when it comes to private credit assets, but keeping and finding talents as well as choosing the right managers remains a challenge.
Asia’s private debt funding gap is spurring a growing wave of investment products to tackle remaining roadblocks for outsider financing.
Big shifts such as consolidations among asset managers will likely happen in the burgeoning private debt markets in Asia. How should global asset owners tap into the private credit boom?
Income-oriented investors need higher yields and diversification – yet with manageable levels of risk. In the search for solutions, Simon England-Brammer of Nuveen outlines the potential for non-traditional assets in the portfolios of Asia Pacific asset owners today.
Sovereign wealth funds such as Mubadala, the Abu Dhabi Investment Authority and Singapore's GIC have been placing more emphasis on private lending, according to two recent reports.
Hesitancy aside, institutional investors eye Australia and Japan as promising geographies for private debt investments within Asia Pacific, with Greater China and Korea on the periphery.
China and India are more obvious choices for AustralianSuper to consider in Asia Pacific, but the super fund currently lacks the expertise and prefers to stick to the US and Europe.