AsianInvesterAsianInvesterAsianInvester

Private credit caution redirects Asian LP capital

Nishtha Asthana
As demand for private credit cools, regional investors are shifting capital into secondaries and real assets to gain stronger protections and clearer liquidity.
Private credit caution redirects Asian LP capital
Key Points
  • Flows into private credit have slowed over semi-liquid product concerns, though institutional interest remains firm as investors demand stronger collateral, clearer capital-return timelines and robust downside protections over headline yields.
  • Private equity distributions remain depressed, prompting investors to actively use the secondaries market for strategic portfolio rebalancing and liquidity management. 
  • LPs are shifting key performance metrics away from traditional IRRs and multiples toward Distributed to Paid-In Capital (DPI), duration and cash-flow predictability. 

Asian investors are becoming more selective about private credit following concerns around semi-liquid products.  “We are seeing that interest and flows into private credit from wealth management have slowed given recent headlines around semi-liquid offerings, although we continue to see solid interest from institutional investors,” Nathan Pensabene, partner at LGT Capital Partners, told AsianInvestor.

Sign in to read on!
Registered users get 2 free articles in 30 days.

Subscribers have full unlimited access to AsianInvestor

Not signed up? New users get 2 free articles per month, plus a 7-day unlimited free trial.
If you are a senior professional at a large institutional asset owner, such as a sovereign wealth fund or pension fund, please contact [email protected] for further assistance.

Questions?
See here for more information on licences and prices, or contact [email protected]
¬ Haymarket Media Limited. All rights reserved.