Infrastructure, mid-market corporate lending and emerging areas such as fund financing continue to attract capital, supported by structural financing gaps and resilient cashflows.
With US monetary policy entering a new phase, Asian credit markets are attracting attention thanks to cleaner corporate balance sheets and an attractive yield profile.
Private credit is emerging as a key stabiliser for portfolios even as tighter spreads and looser covenants raise the risks. OMERS, one of Canada’s largest pension funds, is leaning heavily into private markets while reassessing regional equities and AI infrastructure.
Rapid growth in private credit is outpacing investors’ ability to fully gauge risk, with valuations, liquidity and regulatory oversight under the spotlight.
Board member Eric Neo outlines a shift towards private markets as part of a broader strategy to balance liquidity with intergenerational needs and stable returns.
Private credit investors are carefully weighing trade-offs between yield, risk and collateral in Asia. The hunt for risk-adjusted returns is driving renewed interest in both sponsor-backed and real estate-backed lending.
Private lenders are capitalising on stricter bank lending, stepping up with tailored, rapid-fire financing that’s increasingly attracting Asia’s mid-market and property players.
As the US dollar loses strength and tariffs become a relevant factor, Sam Yu, chair of the Hong Kong Investment Funds Association, highlights a growing trend among investors exploring private credit in new geographies for diversification.
JRT Partners' CIO Tuck Meng Yee sees tactical opportunities across private credit and private equity, while steering clear of overvalued segments and emphasising timing and selectivity.
While most global investors struggle with talent acquisition and scaling challenges in Asian credit markets, CPP Investments has built a distinctive operating model.