Asia Private Credit Fundraising Slows to 12-Year Low in First Half

Asia’s private credit fundraising slowed in the first half of the year as corporate bankruptcy risk, high interest rates, and macroeconomic uncertainty weighed on the market. According to Odaily, PitchBook data showed that only five Asia private credit funds closed fundraising in the first half, raising $1.2 billion, the lowest level for the period in at least 12 years. In the same period of 2025, 29 funds raised $9.5 billion. If fundraising in the second half remains unchanged, 2026 will be the quietest year for Asia’s private credit market in at least 12 years. Over the past year, the collapse of several borrower companies triggered large-scale redemptions from retail investors in private credit funds. Some large institutions have continued to add exposure, aiming to take advantage of opportunities created by retail outflows. Temasek said it plans to raise its private credit allocation from 2% to 5% by 2031.