Private Debt Intelligence – 5/16/2022

Asian regulations hinder private debt fundraising

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Small and medium-sized enterprises form the majority of companies in Asia, accounting for 97% of business. They often face difficulties obtaining financing from traditional banks, which indicates a huge opportunity set for private debt. However, progress is still relatively slow. In 2021, 25 Asia-focused private debt funds raised $9bn, constituting only 4.3% of the global total of $212bn. Unlike Europe, which operates as a single market, Asian lenders have to navigate differing regulations across Asian countries, especially laws governing funds lending with or without a banking licence.

(Past performance is no guarantee of future results.)

Contact: Valerie Kor
valerie.kor@preqin.com