APAC Private Credit to Hit $92 Billion by 2027 as Banks Pull Back

The Asia-Pacific private credit market is on track to reach $92 billion by 2027, up from $59 billion in 2024, marking a 16% compound annual growth rate, according to a new report by the Alternative Investment Management Association, Alternative Credit Council, Simmons & Simmons, EY, and Broadridge.

The boom comes as banks retreat from corporate lending, leaving room for alternative lenders to fill the gap. A Bloomberg survey of major firms, including Apollo, Blackstone, KKR, and Allianz Global Investors, found that Asia-Pacific private credit lending is expected to grow over 10% this year alone. Firms are increasingly targeting high-quality borrowers with steady cash flows, moving away from distressed debt plays.

Top deal sectors include healthcare, education, and consumer businesses, which are benefiting from demographic shifts, rising middle-class wealth, and post-pandemic recovery. According to Blackstone’s Asia-Pacific head Mark Glengarry, “Private credit has become an important source of financing in the US and Europe, and we expect Asia to follow the same trend.”

Australia, Singapore, and Hong Kong remain leading hubs, while emerging markets like India and Vietnam are driving long-term opportunities. Despite geopolitical risks and China’s slowdown, the region remains under-levered, creating space for growth across senior-secured and mezzanine lending structures.

With record private credit assets in Australia reaching A$188 billion in 2023, analysts say APAC is fast becoming the third major pillar of global private credit, following North America and Europe.

Source: Bloomberg