Private Credit Data Insight (Year-End 2019)

EM private credit funds raised USD8.1b in 2019, led by an increase in special situations fundraising

EM private credit fund managers raised USD8.1 billion in 2019. As explored in EMPEA’s 2019 Private Credit Solutions report, investor interest in private credit opportunities has grown in recent years, which is particularly visible in fundraising for special situations strategies. Special situations funds raised USD4.7 billion in 2019, more than in any year on record. Notably, SSG Capital Partners V and PAG Asia Special Situations Fund II raised a combined USD3.7 billion. GPs are prepared to meet increasing demand for credit in Emerging Asia, as banks in the region’s largest economies, China and India, face constraints on additional credit growth and companies seek alternative solutions. With increasing levels of corporate debt coupled with the COVID-19 pandemic, fund managers may see a spike in demand for alternative forms of lending in the region.