AsianInvestor, by Nishtha Asthana

Private credit continues to be in favor as central banks go slow on rate cuts, while rising risks and evolving strategies come into focus.

“In the Asia-Pacific market, we see private credit delivering steady mid-teens returns to investors over the longer term. This is considerably higher vis-à-vis the long term returns of public equities or bonds.”, says Eddie Ong, our Deputy CIO and Managing Director for Private Investments.

Eddie recently discussed the rising appeal of Asia’s private credit market with Nishtha Asthana at AsianInvestor.

SeaTown is seeing an increasing interest in a performing Asian private credit strategy from global investors who have traditionally deployed in developed market credit strategies.

“Given that Asia private credit AUM (assets under management) is less than $100 billion, we believe there is significant growth potential,” noted Eddie. On risks surrounding the asset class, he shared that “with its customised deal structures, assessment must look beyond simple leverage or debt service coverage ratios” and that “downside protection mechanisms and third-party guarantees are crucial in determining creditworthiness”.

Read the full article here (subscription may be required): https://www.asianinvestor.net/article/asia-private-credit-lures-global-investors-amid-risk-concerns/496934