Asia-Pacific

There is plenty of capital for distressed debt strategies in the Asia-Pacific region, but putting it to use raises unique challenges.

Pressures on banks and the high-yield market, especially in China, mean private debt funds can expand through the provision of flexible capital.

Investors are understandably nervous about Chinese private credit, but there are still opportunities for those willing to seek them out.

Opportunities are opening up for private credit investors in markets such as India and Australia, but domestic banks are fighting back in Southeast Asia.

The headline figures may look grim, but sentiment is becoming more optimistic on APAC private debt.

With a robust economic outlook despite elevated interest rates, prospects for APAC private credit remain strong, but international LPs are still underallocating to the asset class, say Huatai International’s Ryan Chung and Isaac Wong.

Delegates at our APAC Forum 2024 heard about a growth opportunity for the asset class as rival sources of financing face difficulties.

The majority of the giant Japanese life insurance group’s investment is as an LP; it also takes a 19.9% stake in the credit-orientated manager.