Family Office Allocations to Asia-Pacific Private Credit Rise Towards 30%

Family office private credit allocation is increasing across Asia-Pacific, with family offices accounting for nearly 30% of regional private-credit assets under management, compared with approximately 23%-24% three years ago.

Sanket Sinha, CEO of global asset management at Lighthouse Canton, said the increase reflects growing interest among Asian wealthy families in private-market opportunities and international investment growth.

Despite accounting for nearly 35% of global gross domestic product, Asia represents only 5%-10% of worldwide private-credit activity, according to Sinha.

He attributed the relatively small market share to fragmented regional markets and a shortage of private equity-backed transactions.

India, Australia, and Japan offer opportunities, particularly in acquisition financing, real estate, and commodities.

Family offices are also strengthening manager due diligence and seeking more co-investment opportunities as younger generations assume greater responsibility for family wealth.