What do Blackstone and Allianz Global Investors have in common, beyond the fact they are among the world’s largest fund managers?
Both see big opportunities in Asia’s private credit market. In May, Blackstone said it was seeking a 10-fold expansion in its private credit assets for Asia – from $500 million currently to at least $5 billion. AllianzGI closed a €450 million Asia Pacific private credit fund the same month, with the aim of increasing it to €650 million by the end of the year.
There are others too. Private equity firm Navis Capital Partners, which mainly focuses on southeast Asia, set up a new Asia private credit platform in July.
US alternative asset manager Apollo tied up with credit and PE fund Belstar Group in August, setting up a joint venture in South Korea for private credit solutions. In June, Apollo formed a partnership with Australian superannuation fund Hostplus, focusing on the growing demand for private credit in the region.
Some investment banks have also set up their own separate private divisions, deploying their own capital, especially for special situations such as buyouts and acquisition financing.
The work required to make sense of all the private credit rules may be tedious, but the rewards could make it worthwhile
Their timing is opportune – but the funds will have to navigate a regulatory quagmire across jurisdictions, as well as a relatively conservative attitude to borrowing money.
Asia’s