Asian Private Credit Fundraising Crashes to Decade Low in H1 2026
Asia-focused private credit funds raised only $1.2 billion in the first half of 2026, the weakest H1 tally in at least ten years, amid rising bankruptcies and waning global appetite.
Asian private credit funds raised a meager $1.2 billion in the first half of 2026, a dramatic collapse from $9.5 billion a year earlier and $20.2 billion in 2022. This marks the lowest H1 total for the asset class in at least a decade.
The number of funds completing fundraising plunged to just 5, down from 29 in 2025 and 53 in 2022. If the pace persists, 2026 would be the weakest fundraising year in 12 years.
The downturn is fueled by rising corporate bankruptcies, as higher interest rates and a softening economy weigh on highly leveraged borrowers. While large institutions still allocate capital to private credit, they increasingly prefer established U.S. managers over smaller Asian funds, mirroring a broader global cooling in investor appetite for the asset class.
Source: The Kobeissi Letter