Life insurer Prudential sees private debt managers doing more ESG-related engagement with companies, as firms like Ares and Tikehau Capital discuss their approach.
With significant firepower at their disposal, Asia Pacific's major asset owners are building new skill sets to expand into private debt opportunities and explore real assets beyond primary markets.
Elevated rates and recent regulations make private debt an attractive option for insurers seeking diversification and high returns, the senior executive said at the Insurance Investment Briefing in Hong Kong.
As recession risks loom and high rates weigh on corporate balance sheets, private credit investors are betting on segments that can capitalise on periods of dislocation and tightening liquidity.
The global themes of decarbonisation, deglobalisation, evolving demographics and the artificial intelligence (AI) revolution continue to create new opportunities to invest in private assets, according to Nils Rode, chief investment officer of Schroders Capital.
The Indonesia Investment Authority continues to push ahead with allocations to infrastructure projects while developing new strategic alliances with institutions across the region.