Private credit has expanded while more conventional credit has been put under pressure by tougher bank capital regulations following the 2008 financial crisis, among other factors.

An affiliate of the Alternative Investment Management Association is creating a group in Asia to improve how issues of around private credit are discussed and regulated – a growing asset class and watched by high net worth clients. 

The Alternative Credit Council, part of AIMA, has formed an Asia-Pacific committee, co-chaired by global ACC Board members Justin Ferrier of BlackRock and Barry Lau of Adamas Asset Management.

The ACC said it expects interest in legal and regulatory reforms to support the growth of private credit will grow as the value of this form of finance becomes better understood by policymakers and regulators. 
Private credit has expanded while more conventional credit has been put under pressure by tougher bank capital regulations following the 2008 financial crisis, among other factors. Committed capital in the private capital space surged 80 per cent in the five years to the end of 2016, according to research firm Preqin, reaching $26.1 billion. About 22 per cent of private debt investors want to target the Asia-Pacific region in 2018, up from 16 per cent saying this a year ago, AIMA said, citing other Preqin figures. The ACC’s annual private credit survey “Financing the Economy”, recently predicted that the private credit market would reach $1 trillion of assets under management by the end of 2020. 

At conferences in different regions the editors of this publication have heard of how family offices, private banks and high net worth individuals are interested in private credit, seen as a source of superior returns. However, some concerns have crept in, such as around whether this asset class can absorb ever higher amounts of capital without a dilution of returns or moves up the risk curve.

ACC said its full committee is as follows: 

Co-Chair: Justin Ferrier, Managing Director, Asian Private Credit, BlackRock; 

Co-Chair: Barry Lau, Managing Partner and CIO, Adamas Asset Management; 

Derek Crane, Group COO, Pacific Alliance Group (PAG); 

Greg Donohugh, CEO, Double Haven Capital (Hong Kong); 

Barnaby Lyons, Managing Director and Head of Asia, Bain Capital Credit; 

Dan Simmons, Partner, OCP Asia; 

James Sweeney, COO, Tor Investment Management; 

Matthew Turner, Head of Australian Senior Debt, Intermediate Capital Group (ICG); 

Peter Warbanoff, Head of Distressed and Opportunistic Credit, LIM Advisors; 

Richard Williamson, Managing Director, CreditEase Wealth Management; and 

Edwin Wong, Managing Partner, SSG Capital Management (Hong Kong).