No longer niche: how private credit is transforming the APAC lending landscape
Since the global financial crisis of 2007-08, private credit – nonbank lending from institutional investors direct to businesses or individuals – has gone from strength to strength.
Advertisement
In Europe and the United States, it now forms an established part of the corporate financing firmament as banks pull back from traditional lending.
According to Macquarie Asset Management in November 2023, the global private credit market is now estimated at around US$1.2 trillion, with annual fundraising growing particularly during Covid-19, from US$120 billion in 2021 to US$225 billion in 2022.
In the Asia-Pacific region, however, it remains a comparatively underpenetrated segment.
With banks reducing lending due to regulations, APAC's private credit market is set to grow, with Hong Kong uniquely positioned to capitalise on the surge, attracting investors seeking high-yield, asset-backed loans. Photo: Edmond So
According to data from Preqin Pro, Asia-Pacific-focused private credit fundraising inched higher to US$5.89 billion across 33 funds in 2024, up from the US$5.48 billion raised from 32 funds in the previous year.
Advertisement
While the growth is modest, wealth managers in the region are increasingly excited by what they see as the potential for private credit to plug a widening lending gap and provide an attractive investment vehicle.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
It will pay Hong Kong's workers to check their savings after MPF shake-up
Hong Kong's retirement savings scheme has had its fair share of criticism over the years. The meagre compulsory monthly contributions and relatively high administration fees charged by private service providers mean many retirees are struggling to make ends meet. Thankfully, a revamp is under way. It is welcome news that fees charged under the Mandatory Provident Fund (MPF) have fallen by 36 per cent since the launch of a centralised electronic platform last year, one of the scheme's most significant reforms since its introduction in 2000. The fee currently set at 37 basis points (0.37 per cent), which is 36 per cent lower than the average of 58 basis points (0.58 per cent) charged by trustees before switching to the e-platform, is expected to decrease gradually. The cumulative savings from lower fees are estimated to reach HK$30 billion to HK$40 billion (US$3.8 billion to US$5.1 billion) over a 10-year period, representing a decrease of 41 to 55 per cent in fees, according to the MPF authority. The massive savings speak volumes for the inadequacies of the previous arrangements. The eMPF was launched last June to provide a centralised online platform that would replace the separate systems used by 12 different operators, allowing all service providers, 367,000 employers and 4.75 million members to manage fund assets worth HK$1.338 trillion on a single platform on their mobile phones or computers. A quarter of the small and medium-tier accounts would have migrated to the platform by August. The top four players that manage 70 per cent of the MPF's assets are slated to move over between September and December – a process described as very challenging.
South China Morning Post
2 hours ago
- South China Morning Post
How Malaysia's wealth of produce inspires Japanese chef at K kaiseki in Kuala Lumpur
Almost five years after the 2020 closure of two-Michelin-star Tenku RyuGin in Tsim Sha Tsui, Hong Kong, former chef de cuisine Hidemichi Seki has embarked on his next culinary adventure. Advertisement He was on hiatus in his homeland, Japan, when the team from Malaysian hospitality group Ilham Dining Concepts (IDC) came knocking in 2022, inviting him to start his own restaurant in Kuala Lumpur. Seki launched his first restaurant, K, in February 2025. On the 37th floor of the Foster and Partners-designed Ilham Tower, the kaiseki restaurant offers a generous 15-course tasting menu. Despite receiving offers from restaurants in Japan, Seki chose to move to Malaysia's capital, wanting to see more of the world while still living close to nature. K kaiseki restaurant opened on the 37th floor of the Ilham Tower in Kuala Lumpur in March 2025. Photo: K Kuala Lumpur 'I've always wanted to gain more diverse experiences overseas and immerse myself in different cultures,' he says. Advertisement
South China Morning Post
2 hours ago
- South China Morning Post
ByteDance-owned Douyin's users in Hong Kong swell to 40% of city's population, report says
Chinese short video platform Douyin now counts about 40 per cent of Hong Kong 's 7.5 million residents as users, about five years after social media giant ByteDance suspended the operation of hit global app TikTok in the city. The number of monthly active users (MAUs) of Douyin in Hong Kong has already surpassed 3 million, according to a report on Tuesday by Guangzhou -based newspaper Southern Metropolitan Daily. That marked a nearly 150 per cent MAU growth from the end of 2022. Beijing -based ByteDance did not immediately respond to a request for comment on Wednesday. The high adoption rate of Douyin in Hong Kong reflects a broader trend among China's Big Tech companies – including Alibaba Group Holding and Tencent Holdings – to widen their local presence as part of efforts to expand beyond the mainland market. Alibaba owns the South China Morning Post. A bird's-eye view of Hong Kong from Victoria Peak. Photo: Shutterstock
