Key Takeaways
- • Asia's private equity assets under management exceeded US$1 trillion as of the end of March, roughly 11 times the size of the region's private credit market, according to Ares Management's head of Asia credit, E.G. Morse, citing Preqin Pro data.
- • The Asia gap is far wider than North America's, where private equity AUM is roughly three times private credit AUM.
- • Morse says investor demand for Asian private credit remains healthy, supported by rising interest in global diversification.
- • The disparity points to substantial room for private credit growth in the region, per the Ares executive.
Summary
Asian private credit has ample room to expand, with investor demand holding up and the region's lending market lagging far behind its private equity industry, according to E.G. Morse, head of Asia credit at Ares Management. Speaking to the South China Morning Post by email, Morse said the region's private equity assets under management stood above US$1 trillion as of the end of March.
Citing Preqin Pro data, Morse said that figure is about 11 times larger than the region's private credit market. The gap is considerably wider than in North America, where private equity assets are roughly threefold private credit assets, highlighting the relative underdevelopment of Asia's direct lending segment.
Morse attributed the outlook to sustained investor appetite. "Investor demand for Asian private credit is healthy, supported by growing interest in global diversification," she said, according to the report. The comments suggest that continued allocator interest in the asset class could support further growth as lending markets develop across the region.
Citing Preqin Pro data, Morse said that figure is about 11 times larger than the region's private credit market. The gap is considerably wider than in North America, where private equity assets are roughly threefold private credit assets, highlighting the relative underdevelopment of Asia's direct lending segment.
Morse attributed the outlook to sustained investor appetite. "Investor demand for Asian private credit is healthy, supported by growing interest in global diversification," she said, according to the report. The comments suggest that continued allocator interest in the asset class could support further growth as lending markets develop across the region.
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