Asia sees rise in private credit as public markets falter

The private credit market is experiencing significant growth, with property developers and startups seeking alternative funding options due to challenges in public debt markets. As seen in JLL's USD585m refinancing loan for a project in Arizona, private lenders, often pension funds and wealth managers, offer an attractive “illiquidity premium” to borrowers. This trend is taking hold in Asia, where investment firm Muzinich & Co. recently closed a USD500m Asia Pacific private debt strategy. Andrew Tan, Muzinich's Asia Pacific CEO, said that private credit in Asia has been ramping up, and major players such as BlackRock, PAG, Bain Capital, and India’s Kotak Mahindra Bank are making moves to enter the private lending market.