Asia’s private debt market faces test amid higher rates, economic slowdown

TOKYO — Fund managers will face a test in the once-hot private debt market, where investors lend directly to businesses without going through banks or markets, amid growing uncertainty about interest rates and the global economy.

Capital raised for private debt funds in the Asia Pacific region fell to $5 billion in 2023 from $15.1 billion in 2021, alternative market data provider Preq said in a report.

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