AllianzGI Gets $744 Million for Latest APAC Private Credit Fund

Allianz Global Investors secured $744 Million in commitments for the first close of its latest private credit fund targeting investments in the Asia Pacific, underscoring sustained investor interest for the asset class in the region.

The Allianz Asia Pacific Secured Lending Fund III targets mid-market private credit opportunities by lending to high-growth companies across Southeast Asia, South Asia, Oceania and selected Asia Pacific markets, excluding China, according to a statement Tuesday. AllianzGI raised $610 million in 2023 for a the predecessor APAC private credit fund.

Private credit in Asia, where managers typically operate through investment vehicles with a defined, finite lifespan, has avoided the kind of elevated withdrawal requests experienced this year by US funds that were offered to wealthy retail investors. Asia still accounts for only a small slice of the global $1.8 trillion private credit market but is growing quickly in some parts, such as India.

Varde Partners is seeking to launch a $1 billion private debt fund, in what would be one of the largest fundraisings in the region this year. Meanwhile, Elham Credit Partners, the private credit arm of Hillhouse Investment, is also planning its second Asia Pacific-focused fund.

Earlier this year, AllianzGI secured $270 million for the first close of a separate private credit fund, targeting infrastructure investment in Asia Pacific.

Photograph: Allianz Global Investors logo; photo credit: Miguel Villagran/Getty Images