Private credit as an asset class has enjoyed explosive growth in recent years with total global assets under management (AUM) reaching over US$1.4 trillion in 2022. Private Credit AUM in Asia also doubled between 2018 and 2022 to US$95 billion.
However, it remains a small segment comprising only 7% of the total global private credit market. This severe under-allocation is more pronounced against the region’s significant contribution to the world economy, accounting for ~40% of global output.
This is changing as investors begin to turn their focus on the superior economic growth and favourable demographics in Asia.