Ares Management (NYSE:ARES) is launching its second Asia-focused private credit fund as global investment managers race to capitalize on the region’s expanding private lending market.
The proposed Asia Direct Lending II Fund, which will finance leveraged buyouts across Asia-Pacific, could exceed the $1.7 billion raised by its predecessor, although details remain subject to change, sources told Bloomberg.
About 60 Asia-Pacific-focused funds managing more than $1 billion each are currently fundraising, accounting for more than 10% of global fundraising targets—well above the region’s 5% share of recently closed funds, according to Bain & Company. The imbalance points to a potential fundraising rebound in 2026 but also intensifying competition for capital as limited partners remain selective.
Despite Challenges, APAC Funds Raise Capital
Allianz Global Investors landed $744 million in investor commitments at the initial closing of its Allianz Asia Pacific Secured Lending Fund III.
KKR & Co. (NYSE:KKR) and Capital Group are working on the launch of a public-private credit fund. The fund, which will be launched in Asia this year, will target both public and private investments as a ‘’more liquid, cheaper, and more transparent” option, Capital Group CEO Mike Gitlin told Bloomberg.
Private equity firm EQT has raised $15.6 billion for its private equity Asia Fund, as investors seek diversification across both asset classes and regions. The fund, which received capital from 75 new investors, had originally sought to raise $12.5 billion when it was launched in 2024
Meanwhile, Blackstone raised more than $12 billion for its Asia fund, while Bain Capital added $10.5 billion to its sixth buyout fund.
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