As private credit has attracted record inflows from institutional investors in recent years, there are concerns that parts of the market may be becoming overcrowded.
Institutional investors are moving away from benchmark-led investing as market concentration, geopolitical uncertainty and volatility push allocators towards active management, alternatives and integrated public-private market strategies, according to a survey by Schroders.
Queensland’s state investment manager has a distribution team in Singapore for its Australian private debt fund, which it says is increasingly attractive for Asian investors.
The search for higher returns is pushing Japan’s life insurers into private debt and asset-based finance, but a lack of local knowledge means they are relying on foreign partners and subsidiaries to scale up safely.
As demand for private credit cools, regional investors are shifting capital into secondaries and real assets to gain stronger protections and clearer liquidity.
Regional insurers continue to consider private credit, infrastructure debt and asset-backed finance even as their chief investment officers are increasingly focused on ensuring their balance sheets can withstand periods of market stress.
As AI-driven concentration risk reshapes direct lending, Nuveen's latest insights explore how institutional investors in Asia Pacific (Apac) are building genuine diversification across alternative credit – without accumulating hidden risk. The key is to create more resilient portfolios by moving beyond concentrated direct lending toward energy infrastructure credit and real estate debt.
As concerns grow over shrinking illiquidity premiums, experts explain how they determine whether private credit still yields sufficient return to justify locking up capital.