Private credit activity in emerging markets is heading for its strongest year on record, with $11.7bn already deployed in H1 2025 – nearly matching the whole of last year – according to a report by Bloomberg citing data from the Global Private Capital Association.
Global firms including Blackstone, Apollo, KKR and Ares are driving the surge, with landmark transactions across India, Southeast Asia, Eastern Europe and the Gulf reshaping perceptions of EM risk and scale.
India has led activity, underpinned by Prime Minister Narendra Modi’s infrastructure build-out. Notable financings include Shapoorji Pallonji Group’s $3.4bn package, backed by Ares, Cerberus, Davidson Kempner and Farallon, and Apollo’s $750m deal for Mumbai’s airport. Elsewhere, Blackstone and HPS Investment Partners committed €1.3bn to Romanian gaming platform Superbet, while Southeast Asia saw $1.1bn in dealflow.
Despite emerging markets representing around half of global GDP, they still account for less than 10% of the $1.7tn private credit market. Rising deal sizes and new locally-focused funds are starting to shift this imbalance. In September, India’s EAAA India Alternatives raised $510m for its debut credit fund, while Czech-backed Aspire11 launched a €500m vehicle to funnel pension savings into private capital.
The Gulf is also emerging as a hub, with Saudi Arabia’s Public Investment Fund anchoring new Goldman Sachs-managed vehicles targeting private credit and equity across the GCC.
For LPs, the attractions are diversification, higher yields and exposure to economies growing faster than developed markets.
