Private credit manager Elham Credit Partners, the Asia-focused lending arm of Hillhouse Investment, is preparing to launch its second Asia Pacific strategy vehicle as investor appetite for regional private debt continues to strengthen, according to a report by Bloomberg.
The Singapore-based firm is targeting a fund size of around $700m to $750m, according to people familiar with the matter, exceeding the roughly $600m raised for its inaugural fund closed last year. The vehicle remains in early-stage planning and the final size could shift depending on market conditions.
The new fund would continue Elham’s focus on private lending opportunities across Asia Pacific, following earlier investments in markets including India, Australia and Japan.
The fundraising push comes as private credit managers increasingly look to Asia as a key growth market within the broader $1.8tn global private debt industry, even as tighter liquidity conditions and refinancing risks weigh on parts of the US market.
While Asia remains a smaller share of global private credit, managers in the region typically operate with more conservative lending structures and closed-ended fund vehicles, which some investors view as offering greater stability in volatile conditions. However, the asset class is also drawing heightened scrutiny as it expands.
Other managers are also scaling regional strategies, with Varde Partners reportedly preparing a $1bn Asia-focused private debt fund, underscoring continued competition for institutional capital.
Industry forecasts suggest Asia’s private credit market could expand to about $92bn by 2027, up from $59bn in 2024, driven by demand for diversification and yield enhancement among global investors.
