Last week at the PDI APAC Forum in Singapore, Kanchan Jain, Head of Ascertis Credit Group, participated in an engaging panel discussion with Diane Raposio Head of Asia Credit & Markets KKR & Co. L.P, Kevin Griffin, CEO & Chief Investment Officer at MGG Investment Group, LP, Siddhartha H., Co-Head and Partner of Elham Credit Partners, and moderator Karun Marwah, Founding Partner at Endue Capital. The geographies and strategies represented on the panel provided a rich "compare and contrast" perspective on sponsor vs. non-sponsor private credit markets across the US, as well as on private credit opportunities in the US and Asia. The discussion addressed the critical issue of relative value in Asia private credit along multiple dimensions with clear answers, and considered compelling trends in each, right from creative strategies employed by managers for origination and structuring of credit solutions, and the presence of strong covenants available in Asia versus the US.
Key takeaways from the discussion:
🔹 Superior Risk-Return Profile: In spread terms, performing credit strategies in high growth economies of Asia are delivering approximately 1200 bps gross and 700 bps net over the benchmark —without the need for fund-level leverage —significantly outperforming the tightly squeezed US sponsor credit.
🔹 Resilient Asia Private Credit: Despite heavy capital flows into the US market, Asia's private credit has continued to impress with strong returns, continued inclusion of robust covenants, and excellent downside protection amidst capital shortage.
🔹 Diversification and Stability: As policy uncertainty and equity market volatility persist, experienced investors continue to allocate to Asian private credit, recognizing the robust alpha, liquidity and diversification benefits, and lower market volatility. This positions Asia private credit as a stable, attractive investment alternative to oversaturated US markets, and weaker European markets.
As the private credit landscape continues to evolve, Asia remains a high-potential market that offers compelling opportunities for experienced investors.
Please refer to the Linkedin post for more details.
