Asia’s private credit market has ample room for expansion, Ares executive says
Asian private credit has ample room to expand, with investor demand holding up and the region’s lending market lagging far behind its private equity industry, according to E.G. Morse, head of Asia credit at Ares Management. The region’s private equity assets under management stood above US$1 trillion as of the end of March, about 11 times more than private credit, the executive said, citing…
Ares Management has successfully raised €3.3 billion for a private credit continuation fund, marking a significant transaction in the credit secondaries market, as reported by Bloomberg. Coller EQT, a prominent secondaries investor, spearheaded the deal, which finalized in early November with Evercore serving as the financial advisor.
The newly formed fund acquired 24 loans previously held by Ares Capital Europe Fund IV, a direct lending fund that closed with €6.5 billion in commitments in 2018. This acquisition offers existing investors a much-needed liquidity option while enabling Ares to maintain a stake in the underlying loan portfolio. Investors in the initial fund received returns equivalent to roughly 150% of their initial capital commitments.
This acquisition underscores the rapid growth in private credit secondaries, as fund managers search for alternative liquidity solutions due to a prolonged exit slowdown. In the first half of 2026, transaction volumes surged to $20.4 billion, more than doubling compared to the full-year 2025 total. European credit secondaries transactions are projected to reach €13 billion this year, constituting approximately 28% of global capital deployment, as opposed to the 72% share in North America.
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- Ares raises $3.6bn for major private credit continuation fund privateequitywire.com
