Andrew Tan: Accessing opportunities in Asia Pacific private debt

Investors can benefit from higher yields

While private debt is firmly embedded in the lending landscape in the US and Europe, the asset class is playing catch-up in the Asia Pacific region.

We believe this has the potential of offering opportunities for investors looking for higher yields and protection from interest rate risk. The Asia Pacific region is home to around 150 million small and medium-sized enterprises (SMEs). However, they are underserved by lenders due to regulatory changes and only benefit from approximately 20% of all bank lending.   Private debt is starting to gain traction in the region. In 2020, the Asia Pacific private debt assets under management totalled $65.6bn, compared to $595.6bn in the US and $289.5bn in Europe. Asia Pacific growth: Finding...