Global asset managers, including BlackRock and Apollo Global Management struck a confident tone on private credit at Bloomberg’s Invest Hong Kong conference, pushing back against recent concerns over defaults and liquidity pressures in the sector, according to a report by Bloomberg.
Executives from the firm said the asset class remains structurally important for institutional and wealth portfolios, particularly as traditional 60/40 equity-bond allocations face weaker forward return expectations.
BlackRock Asia-Pacific head Susan Chan argued that private markets are increasingly central to long-term portfolio construction, highlighting their role in diversifying risk and enhancing returns. She said the evolution of private credit reflects a broader shift in how investors seek income and diversification beyond listed markets.
The comments come amid ongoing debate about the resilience of private credit following a series of high-profile corporate stress events last year, including defaults at companies such as First Brands Group and Tricolor Holdings, which had fuelled concerns about underwriting standards and systemic risk. Despite this, industry participants at the event said fundraising and demand trends have remained broadly resilient.
Arcmont Asset Management’s Anthony Fobel also pointed to continued strong investor interest in the asset class, suggesting that negative headlines have not materially disrupted capital allocation decisions.
Speakers emphasised that Asia in particular offers a strong backdrop for private credit deployment, with investors highlighting its role in financing both high-growth technology companies and the broader transformation of more traditional industries.
At the same time, several fund managers linked future returns in the region to macroeconomic developments in China, where consumption and investment activity remain influenced by the property cycle. PAG CEO Chris Gradel noted that household savings in China could represent a significant source of future capital flows into markets once real estate conditions stabilise.
Apollo Global Management Asia-Pacific leadership also pointed to demographic-driven investment opportunities across the region, including ageing populations creating demand for retirement solutions and sustained financing needs from fast-growing economies.
Despite the positive tone on fundraising, speakers acknowledged that exit conditions remain a key focus across private markets. Secondary sales continue to play an important role in providing liquidity, although discounts vary widely depending on asset type, with venture assets typically trading at deeper reductions than buyout portfolios.
Some managers suggested that improving IPO markets could gradually reduce reliance on secondary transactions, with expectations for a number of portfolio company listings over the next 12–18 months, particularly in Asia.
Overall, sentiment at the conference reflected a cautious but broadly constructive outlook for private credit, with investors emphasising its growing structural role in diversified portfolios despite recent volatility in parts of the market.
