Asia's private debt market faces test amid higher rates, economic slowdown

TOKYO -- Fund managers are going to face a test in the once-hot market of private debt, where investors lend directly to businesses without going through banks or markets, amid growing uncertainty about interest rates and the global economy.

Capital raised for private debt funds in the Asia Pacific region dropped to a seven-year low of $5 billion in 2023 from a peak of $15.1 billion in 2021, said Preqin, an alternative markets data provider, in a report.