SINGAPORE: Singapore-based investment firm Granite Asia has raised more than US$500mil for its Asia-focused private credit strategy, defying investor concerns about the asset class.
Led by managing partner Ming Eng, the Libra Hybrid fund was launched in mid-2025 with US$250mil and an initial target of US$500mil. Investors include Temasek Holdings Pte subsidiary Aranda Principal Strategies, DBS Private Bank, Malaysia’s Khazanah Nasional Bhd and the Indonesia Investment Authority.
Granite’s raising comes despite warnings from Moody’s Ratings that growth in private credit fundraising and deployment across the region is set to slow, partly due to global redemptions.
The US$1.8 trillion industry has been hit by woes ranging from the high-profile collapse of borrowers including Tricolor Holdings to caps on redemptions by major players like Blue Owl Capital.
“The demand was stronger than we expected given that ‘private credit’ have not been the favoured words of the year thanks to the US market,” Ming said.
“But Asian investors understand that Asia is fundamentally different.”
Libra Hybrid has completed eight transactions since its inception and seen two exits. While she declined to state the returns, Ming said private credit funds in Asia should target internal rates of return in the teens.
Part of the money has been distributed back to investors, while the rest will be recycled for future deals. Although Ming’s team doesn’t offer the cheapest interest rates in the market, she said it aims to use various alternative methods to attract borrowers and reap returns.
These could include providing funds for acquisitions and then sharing in the increased revenue, for example.
Ming said the broader issues in the private credit market haven’t hurt the sector’s prospects in Asia because much of the influx of funding went to the United States and Europe. Now, some investors are looking to switch regions rather than cut allocations. — Bloomberg
