Asia Private Credit Debates Changes to Soothe Jittery Investors

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Some of Asia’s private credit firms are mulling changes to the industry including longer lock-up periods and higher redemption caps after turmoil in the US in recent months increased scrutiny from investors and regulators across the region.Muzinich & Co., a global institutional asset manager specializing in corporate credit, said allowing a higher redemption cap above the typical 5% if some conditions are met is one of a slew of considerations being looked at by the sector, according to its Asia head. In Australia, managers are putting more focus on explaining underlying holdings and guardrails to investors. Meanwhile, regulators in Japan and South Korea are requesting better disclosure and data into the sector.