Investors fearful of an economic slowdown and rising inflation were wary of committing to private credit, especially in Asia Pacific, for most of the year just ended.
Fundraising for private credit focused on Asia Pacific was just US$2 billion in the first nine months of 2025, 42% of the $4.8 billion raised in all of 2024, according to figures compiled for Asia Asset Management (AAM) by data provider Preqin.
Globally, the asset class raised $134.7 billion from January through September, 68.34% of the total $197.1 billion in 2024.
“Factors like rising inflation and economic slowdown deterred investors from committing to private credits in 2025,” RJ Joshua, head of private debt at Preqin, tells AAM.
But he expects to see a rebound this year as investor sentiment improves with US interest rate cuts, saying that despite “macroeconomic volatilities, private credit continues to enjoy investor confidence”.
He pointed to a Preqin survey in November which found that 60% of investors invest in private credit to generate steady income and for risk diversification, and 73% said the asset class had met their expectations.
According to Joshua, the survey findings show that “the majority of investors remain satisfied with their private credit positions despite some prominent negative reporting such as rising default rates”.
He expects global private credit assets to increase from $2.09 trillion in 2024 to $4.5 trillion in 2030, representing an average annualised growth rate of 13.57%.
