• The APAC private credit market is projected to grow by 46% from US$59 billion in 2024 to US$92 billion by 2027.
• Wealth investors’ share of AUM is expected to rise to 28% by 2027, up from 23% in 2020, driven by new product innovation and enhanced digital access.
• Market fragmentation, regulatory complexity, and currency risk remain key hurdles to further growth.

The Asia-Pacific (APAC) private credit market is projected to grow from US$59 billion in 2024 to US$92 billion by 2027, according to a new report from the Alternative Investment Management Association (AIMA), via its private credit affiliate, the Alternative Credit Council (ACC), co-authored with Simmons & Simmons, EY, and Broadridge.

The report, ‘Private Credit in Asia’ finds that global and local investors are driving this expansion as they seek yield, diversification, and exposure to the region’s growing middle class and infrastructure financing needs.

APAC is expected to grow faster than the global average in the coming years, with local investors increasingly supporting the region’s growth with greater scale and sophistication, alongside global investors.

The report also highlights that the region’s expanding middle class, urbanisation and infrastructure gap—estimated at US$26 trillion through 2030—represent enormous potential for private credit deployment.

Yet fragmented markets, complex regulations, and currency mismatches continue to challenge investors. The region spans more than 50 jurisdictions and remains largely sponsorless, with 90% of transactions involving borrowers without private-equity backing—underscoring its focus on underbanked SMEs and mid-market businesses.

Key findings:

• Growth hotspots: Australia, India, Japan, and Singapore are leading the region’s growth, with robust market development supported by favourable macroeconomic fundamentals and investor interest. Singapore has emerged as a regional hub for structuring and origination, while Japan is attracting global managers with its growing demand for higher-yield opportunities.
• Sector and strategy spotlight: The report highlights the diversity of strategies—direct lending, special situations, infrastructure debt, and mezzanine—employed by both global and regional managers. Special situations now account for over one-third of APAC private credit AUM, while direct lending forms the foundation for many portfolios.
• Market structure and scale: APAC’s private credit market remains highly fragmented, spanning over 50 jurisdictions. The market is predominantly sponsorless, with 90% of deals involving borrowers without private equity backing, and is focused on underbanked SMEs and mid-market opportunities.

Methodology

ACC’s Financing the Economy estimates that the global private credit assets under management at US$3 trillion in 2024. Regional and country-level analysis draws on data from Broadridge, Ernst & Young Insights, and Preqin, among other sources.

Ester Chow, Partner at Simmons & Simmons, said, “Private credit funds have a comparative edge in providing bespoke, flexible financing for underbanked SMEs and mid-market borrowers, segments often underserved by traditional banks. Their ability to move quickly and address complex or non-standard financing needs, which banks may find too costly or operationally challenging to serve, helps fill significant financing gaps in the region.”

In addition, the relationship between banks and private credit is increasingly collaborative. Private credit funds and banks are partnering through joint underwriting, shared due diligence, distribution partnerships, and secondary market mechanisms. These collaborations combine banks’ client relationships and local market knowledge with private credit’s flexible capital and appetite for risk, helping both navigate regulatory challenges and better serve borrowers.

Ivan Au, Wealth & Asset Management Partner at Ernst & Young, said, “The APAC private credit market stands out for its uniqueness and appeal, boasting a robust 16% CAGR as assets under management grow from US$59 billion in 2020 to US$92 billion by 2027, fuelled by abundant opportunities in the region’s highly fragmented markets. The key to unlocking and harnessing this potential is a strategic fusion of global institutional best practices with profound local regional expertise.”

Yoon Ng, Head of APAC Asset Management Growth Solutions at Broadridge, said, " To stay competitive in today’s dynamic and demanding environment, private credit firms must rethink how they use data and technology, adopting tools that not only improve transparency and efficiency but also enable smarter, faster decision-making. A robust data and technology strategy is no longer optional—it’s fundamental to building resilience and driving sustainable success in the private credit space."

Kher Sheng Lee - Managing Director APAC at AIMA said “While global credit markets face near-term strain, Asia’s structural growth story endures. Expanding economies, regulatory progress, and bank disintermediation are unlocking long-term opportunities for private credit to finance growth, innovation, and infrastructure across one of the world’s most dynamic regions.”

To access the full report and explore detailed insights, please click here to download Private Credit in Asia 2025.