Asia Private Credit Chases Gains as Stress Mounts for US Peers

Asia-based private credit funds are emerging as a possible hedge against turmoil gripping the $1.8 trillion industry, as investors seek safer alternatives in the asset class.

Concern about US private credit exposures to the software sector that’s under pressure from rapid advances in AI, has fueled redemptions at funds run by firms including BlackRock Inc., Blackstone Inc. and Blue Owl Capital Inc. By contrast, Asia Pacific vehicles — with more conservative lending practices and comprised mostly of closed-ended funds — are better insulated from liquidity risks that have plagued the US and Europe, according to several private credit executives who spoke to Bloomberg News.