Despite enthusiasm, fundraising for APAC-focused private credit funds has been lackluster, with $1.6bn raised so far this year

  • Temasek-owned Seviora Holdings has formed a partnership that will see the asset management group take a minority stake in Hong Kong SAR-based private credit manager ADM Capital.

  • Seviora wants to expand its private credit offering in APAC and capture opportunities in the underbanked and underserved middle market.

  • Seviora Holdings was founded in 2020 as an asset management group, bringing fund-of-funds managers Azalea Asset Management and Fullerton Fund Management Company, private debt manager InnoVen Capital, and Seatown Holdings, which manages private equity, private debt, and hedge funds, under a single umbrella.

  • ADM Capital has raised $1.2bn for private debt funds over the past 10 years and currently has two funds in market, targeting $500mn overall, according to Preqin data.

July 16, 2024 (Preqin News) – The APAC region comprises just 5.1% of global private debt AUM. So far this year, the aggregate capital raised for APAC-focused private debt strategies amounted to $1.6bn from 16 fund closes, compared with $56.0bn for North America and $17.1bn for Europe. Last year, GPs raised $8.4bn for APAC-focused private credit funds, down significantly from $13.7bn in 2022.

Despite this, many fund managers remain optimistic about private debt in the region. In Private Credit in Asia Pacific: A Region on the Rise, global alternative assets manager KKR said there is ‘tremendous growth potential and opportunity for investors’ in APAC, in part due to economic and demographic growth prospects, a lack of access to flexible capital, and relatively less-developed public equity and debt capital markets.

Preqin is currently tracking 122 APAC-focused private credit funds in market, seeking to raise $31.1bn.

The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.