Private credit fundraising is gaining popularity in Asia Pacific. In an interview with the South China Morning Post (SCMP), Baker McKenzie Partner Kenneth Ching explains that “private credit can finance deals that banks cannot, as well as offer additional flexibility that banks would not be willing to give.”  SMEs are finding this flexibility attractive, despite private credit comes with higher pricing. “Many private lenders target mid-cap financing to SMEs and venture capital firms,” says Ching. 

Ching notes that traditional banks in Hong Kong are also setting up their own private credit units. “Hong Kong’s flexible regulatory frameworks has helped spurred that growth.”

In recent years, there has been a large number of sizeable fundraisings by private equity funds, asset managers and credit funds focused on private credit investments in the Asia Pacific region. With private credit as an asset class becoming more attractive to institutional investors in search of returns, risk diversification and more opportunities, private credit is poised to grow across Asia Pacific in years to come.

In response to this growing trend, Baker McKenzie has released the 2024 edition of “Guide to Private Credit in Asia Pacific”. The Guide focuses on key issues that a private credit provider should consider across 14 Asia Pacific jurisdictions. It provides both a high-level overview and a more detailed jurisdiction-by-jurisdiction analysis.

Download the 2024 Guide to Private Credit in Asia Pacific here. 

Read the full SCMP article here (subscription access required)
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