Varde Partners is looking to launch its first Asia fund focused exclusively on private credit, and has plans to raise $1 billion for the fund.
The vehicle will deploy capital across Asia, with a focus on India, Australia and Southeast Asia, sources told Bloomberg. The firm, which specializes in credit investing, has raised capital for two Asia-focused funds that targeted public and private credit in the past.
Varde Partners is joining a host of other firms that have launched Asia-focused private credit funds in recent months, despite a challenging fundraising environment.
KKR & Co. (NYSE:KKR) and Capital Group are working on the launch of a public-private credit fund, which will be launched in Asia this year.
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.
Both Blackstone and Bain Capital have also recently raised billions of dollars in their Asia funds, adding $12 billion and $10.5 billion, respectively.
Last month, Allianz Global Investors (AllianzGI) announced the first close of its Allianz Asia Pacific Infrastructure Credit Fund, with $270 million in commitments. This new fund is designed for institutional investors seeking debt exposure to infrastructure borrowers in South and Southeast Asia. The final close is expected next year.
Meanwhile, Dawson Partners is opening a Hong Kong office as the investment manager looks to expand its private markets platform into Asia. The new office is intended to function as a regional base focused on investor engagement and capital-raising activity.
According to a report from the Alternative Investment Management Association (AIMA), the Asia Pacific private credit market is projected to grow to $92 billion in 2027 up from $59 billion in 2024. This 16% compound annual growth rate is being driven by "strong demand from institutional and wealth investors seeking yield and diversification."
"The APAC region is experiencing strong tailwinds, driven by structural shifts in economic activity, investor demand for diversification, and the increasing need for flexible financing solutions," the report noted.
Approximately 60 Asia-Pacific-focused funds over $1 billion are currently fundraising, representing more than 10% of global targets, well above the region’s 5% share of recently closed funds, according to a report from Bain & Company.
This gap points to a potential rebound in 2026 but also signals tougher competition for capital as limited partnerships stay selective. Early commitments to several large funds suggest fundraising may begin to recover in 2026.
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