Odaily Planet Daily report: Due to corporate bankruptcy risks, high interest rates, and macroeconomic uncertainty, fundraising for Asia’s private credit funds continues to cool. According to PitchBook data, only five Asia-focused private credit funds completed fundraising in the first half of this year, raising a total of $1.2 billion—the lowest level for the same period in at least 12 years; during the same period in 2025, 29 funds raised $9.5 billion. If the fundraising pace remains unchanged in the second half of the year, 2026 will become the slowest year for Asia’s private credit market in at least 12 years.
Over the past year, the collapse of multiple borrowing companies has led to large-scale redemptions by retail investors in private credit funds. However, some major institutions continue to increase their positions, seeking to capitalize on the opportunities created by retail capital outflows. For example, Singapore’s Temasek announced plans to raise its allocation to private credit from 2% to 5% by 2031. (Financial Times)