Key Takeaways
- • Allianz Global Investors secured $744 million in commitments at the first close of its Allianz Asia Pacific Secured Lending Fund III, according to a Bloomberg report.
- • The fund targets mid-market private credit lending to high-growth companies in Southeast Asia, South Asia, Oceania and selected Asia Pacific markets, excluding China.
- • The new close is a step up from the $610 million AllianzGI raised in 2023 for its predecessor APAC private credit fund.
- • Asian private credit has avoided the elevated withdrawal requests seen this year at US funds offered to wealthy retail investors, per the report.
- • Varde Partners is seeking $1 billion for a private debt fund, and Elham Credit Partners, the private credit arm of Hillhouse Investment, is planning a second Asia Pacific-focused fund.
Summary
Allianz Global Investors has secured $744 million in commitments for the first close of its latest private credit fund focused on the Asia Pacific region, according to a statement issued Tuesday and reported by Bloomberg. The vehicle, the Allianz Asia Pacific Secured Lending Fund III, targets mid-market private credit opportunities by lending to high-growth companies across Southeast Asia, South Asia, Oceania and selected Asia Pacific markets, excluding China. The company said the result underscores sustained investor interest in the asset class in the region.
The first close compares with the $610 million AllianzGI raised in 2023 for its predecessor APAC private credit fund. Earlier this year, the firm also secured $270 million for the first close of a separate private credit fund targeting infrastructure investment in Asia Pacific.
Bloomberg notes that private credit in Asia, where managers typically operate through investment vehicles with a defined, finite lifespan, has avoided the kind of elevated withdrawal requests experienced this year by US funds offered to wealthy retail investors. Asia still accounts for only a small share of the global $1.8 trillion private credit market, although it is growing quickly in some markets, such as India.
Competition for regional capital is also building. Varde Partners is seeking to launch a $1 billion private debt fund, which would be one of the largest fundraisings in the region this year. Elham Credit Partners, the private credit arm of Hillhouse Investment, is also planning its second Asia Pacific-focused fund.
The first close compares with the $610 million AllianzGI raised in 2023 for its predecessor APAC private credit fund. Earlier this year, the firm also secured $270 million for the first close of a separate private credit fund targeting infrastructure investment in Asia Pacific.
Bloomberg notes that private credit in Asia, where managers typically operate through investment vehicles with a defined, finite lifespan, has avoided the kind of elevated withdrawal requests experienced this year by US funds offered to wealthy retail investors. Asia still accounts for only a small share of the global $1.8 trillion private credit market, although it is growing quickly in some markets, such as India.
Competition for regional capital is also building. Varde Partners is seeking to launch a $1 billion private debt fund, which would be one of the largest fundraisings in the region this year. Elham Credit Partners, the private credit arm of Hillhouse Investment, is also planning its second Asia Pacific-focused fund.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.