Asia-Pacific is a promising market for fund finance

The full article was published on PEI Private Credit on 3 September 2026. Read the article here (registration required).

Author: Siddharth Poddar

As fundraising has slowed and exits become harder, fund finance in the region has never been busier, with GPs increasingly tapping into sources of liquidity.

Asia-Pacific private equity fundraising fell to roughly $58 billion in 2025, the lowest level seen in over a decade, per Bain & Company, with the region’s share of global fundraising falling to just about 5 percent.

In a year during which fundraising numbers fell, fund finance played a different tune. Fifty-nine percent of fund finance in the region was in the form of new facilities rather than extensions or amendments, in transactions advised on by global law firm Mourant.

The gap between a shrinking fundraising market and a busier fund financing one is not a contradiction. While fundraising is slow due to greater macroeconomic uncertainty, the region is also seeing a tougher exit environment and increasingly impatient LPs.