At the recent Strategic Insights Summit in Singapore, industry experts discussed the current challenges and opportunities surrounding private credit. Even a recent slowdown in M&A activity has not impacted the appeal of private credit. The combination of more flexible funding for borrowers and comparatively stable returns for investors helps explain the appeal and the growth of private debt.
The panelists dove into the opportunities in this asset class—the best risk-adjusted returns in decades, credit quality improving and yields are up—especially for new deals. Another positive is that, as an asset class, private credit is very defensive. Private debt portfolios should withstand what gets thrown at them, which is attractive to investors whose desire for a lower volatility option is quite high.
The panelists shared their outlook on the following questions:
- Do they worry about an oversupply of capital?
- What is the ideal exposure in your portfolio?
- What are target returns for private credit in Southeast Asia?
- Does ESG create opportunities where lenders are unwilling to lend to sectors that are not ESG-friendly?
- What is the outlook and appetite for venture debt in APAC in the current market?
- Are private credit firms seeing tightened governance requirements from local authorities?
For fund managers thinking about getting into the private credit space or investors looking to allocate into private credit, our "Private Credit: Challenges, Risks, and Opportunities" video is a must-watch to answer three overarching questions. Why private credit? Why Asia? And why now? Watch the video to take advantage of these opportunities in the next 6-12 months.
Whether firms are planning to launch a private credit fund or are already well established, SS&C is well-positioned to help you navigate the opportunities and challenges the market presents. Get up to speed more quickly in private credit by partnering with an outside service provider that knows the business, and that is making the necessary investments to keep up with changing technology. Fund managers in Asia-Pacific and beyond rely on SS&C for solutions and services spanning the full investment life-cycle, from fundraising to fund administration to investor servicing.
Additional Resources
Establishing and Managing a Private Credit Fund in Asia Whitepaper
