Asian private credit fundraising falls to 12-year low
Fundraising by Asia-based private credit managers has fallen to its lowest level in more than a decade, as concerns over corporate defaults and high-profile bankruptcies prompt investors to favour larger, established US firms, according to a report by the Financial Times.
Only five private credit funds based in Asia closed during the first half of 2026, raising a combined $1.2bn, according to PitchBook data. That compares with 29 funds raising $9.5bn in 2025 and 53 funds securing $20.2bn in 2022.
If the pace of fundraising continues through the second half of the year, 2026 would be the weakest year for Asian private credit fundraising in at least 12 years.
The slowdown comes as investors become more cautious about the risks associated with private credit, while those still willing to allocate to the asset class increasingly favour managers with substantial scale and long track records.
Asian private credit remains considerably smaller and less mature than the markets in the US and Europe, but had been expected to grow rapidly. The Alternative Investment Management Association predicted in November that assets in the region could increase by 46% to $92bn between 2024 and 2027, with wealthy individuals expected to provide a significant share of new capital.
Listed private credit vehicles have faced increased redemption pressure from retail investors over the past year following the collapse of several companies that had borrowed from the funds.
Institutional investors, however, continue to commit significant sums to the asset class, seeking to take advantage of opportunities created by the retreat of retail capital.
Singaporean state investor Temasek said this month that it plans to increase its allocation to private credit from 2% to 5% by 2031.
Temasek-owned alternative asset manager SeaTown International was among several Asian firms, alongside Granite Asia, to close private credit funds last year.
However, US managers have continued to dominate fundraising in the region. KKR closed an Asia-Pacific fund with $2.5bn of total investable capital in December, making it one of the largest vehicles raised in the region in recent years, according to PitchBook.
Temasek’s fund platform Seviora also closed a $400m collateralised fund obligation structure this month, highlighting continued institutional demand for private credit strategies despite the broader fundraising slowdown.
