Granite Asia targets middle-market deals

Singapore-based investment firm Granite Asia is concentrating on mid-sized businesses across Asia for its new private credit investments, following the successful fundraising of over $500m for its pan-Asian Libra Hybrid strategy, according to a report by Reuters. The firm is particularly interested in sectors such as advanced manufacturing and healthcare, with managing partner Ming Eng asserting that the middle market presents an appealing blend of growth potential and financing demand.

Libra Hybrid surpassed its initial $500m fundraising target last month. Eng, who oversees Granite Asia's private credit strategy, indicated that there is no predetermined limit on the fund; however, the firm is currently emphasizing capital deployment over further fundraising. Since its inception in 2025, Libra Hybrid has executed eight investments and realized two exits, having already distributed profits to investors.

Eng reported that the strategy has achieved returns in the "teens" during its inaugural year, though she did not disclose a more specific percentage.

Granite Asia perceives private credit as especially suitable for mid-market companies that can access traditional bank financing but may be hesitant to raise equity and dilute existing shareholders. The firm adopts a wide-ranging approach to geography, evaluating investment themes including digitalization, technology adoption, regional expansion, and shifts in global supply chains.

Asia's private credit market remains significantly less developed than those in the US and Europe, resulting in an imbalance between available capital and borrower demand. This opportunity is drawing growing interest from institutional investors as private credit managers expand across the region.

According to the Alternative Investment Management Association, the Asia-Pacific private credit market is forecast to expand from $59bn in 2024 to $92bn by 2027.