As demand for private credit cools, regional investors are shifting capital into secondaries and real assets to gain stronger protections and clearer liquidity.
Regional insurers continue to consider private credit, infrastructure debt and asset-backed finance even as their chief investment officers are increasingly focused on ensuring their balance sheets can withstand periods of market stress.
As AI-driven concentration risk reshapes direct lending, Nuveen's latest insights explore how institutional investors in Asia Pacific (Apac) are building genuine diversification across alternative credit – without accumulating hidden risk. The key is to create more resilient portfolios by moving beyond concentrated direct lending toward energy infrastructure credit and real estate debt.
As concerns grow over shrinking illiquidity premiums, experts explain how they determine whether private credit still yields sufficient return to justify locking up capital.
Regulator ASIC is stepping up scrutiny of private credit following rising defaults, valuation uncertainty and redemption pressures in markets like the US and Europe.
The asset class cannot be treated as a monolith, as there are critical distinctions across global infrastructure, regional dynamics and liquidity structures, says Simon La Greca.
Bracing for a "polycrisis" world, the Singaporean investor is targeting 5% allocations to private credit and infrastructure alongside portfolio-wide AI adoption.