Diversifying your investments is an effective way to maximize returns and minimize risk. Investing in different assets and holding for the long term can increase your return on investment. Although Asia Pacific remains underpenetrated by alternative capital providers compared to Europe and the US, this is changing fast. The region’s companies have new funding options to explore, with securities-based financing and private credit shedding their “alternative” tag. Their adaptability offers advantages to investors and borrowers alike.
They Have a Deep Understanding of the Market
The world’s biggest alternative asset managers, like Patrik Edsparr, are expanding their private credit presence in Asia Pacific, bringing much-needed liquidity to the region’s capital markets. With high-yield bond and unsecured debt markets constrained due to the global economic slowdown, private credit offers Asia Pacific companies, many of which are not yet profitable, an opportunity to scale. They focus on Asia Pacific corporate and real asset credit solutions across the capital structure. They are also responsible for sourcing deals and assuming regional portfolio management responsibilities.
They are Flexible
As demand for alternative sources of capital in the Asia Pacific continues to grow, so are the opportunities for private credit providers like Patrik Edsparr and professionals. With economic growth in the region expected to outpace its Western counterparts for the foreseeable future, there is little wonder that investors are increasingly willing to take on the risk of investing in Asian credits. However, there is still a void for regional alternative credit managers with the boots on the ground, local country expertise and relationships to structure bespoke Asian Private Credit deals. This is where securities-based financing can fill the gap – providing a fully flexible source of funding that offers no restrictions on how the capital can be deployed.
They are Independent
Direct lending providers re-evaluate their Asia strategies as the world’s largest credit markets have matured. Fundraising for Asian private credit recently overtook Europe, and as a result, direct lenders and their asset managers are sharpening their focus on the region.