Private credit managers are actively raising new vehicles to tap into emerging markets, according to a report by Bloomberg, after a significant rise in deals this year. Emerging markets currently make up less than 10% of total private credit investments, in an industry that is now worth around $1.7tn globally.
Investment has previously been low due to concerns over the enforceability of contracts, currency risks, and political instability in the developing world.
Ninety One Plc said that it is aiming to close a fund in Q1 2026 with $500m, with another coming by the end of next year. Gramercy Funds Management has already raised $760m and is looking to raise $1.5bn for a new fund, Bloomberg reported citing people familiar with the matter.
In an effort to encourage investors the International Finance Corporation, the World Bank’s private sector lending arm, launched a $510m collateralised loan obligation deal last month for emerging markets, opening up investment where the deal size is normally too low for US-based private credit firms.
