Asian Private Credit Fundraising Drops 87% To 12-Year Low

H1 fundraising fell to $1.2B across five funds, an 87% decline from prior year. Retail redemptions rise amid defaults, while Temasek plans to boost allocation.

Woofun AI data shows that Asian private credit funds raised only $1.2 billion across five deals in the first half of the year, marking the lowest level for the period in at least 12 years. This represents a sharp contraction from the $9.5 billion raised by 29 funds during the same period in 2025. Corporate bankruptcies and high interest rates have triggered large-scale retail investor redemptions. Conversely, institutional investors are expanding exposure; Singapore's Temasek announced plans to increase its private credit allocation from 2% to 5% by 2031.