Granite Asia exceeds US$500 million target for pan-Asia private credit fund

[SINGAPORE] Multi-asset firm Granite Asia has raised more than its target amount of US$500 million for its pan-Asia credit fund, Libra Hybrid.

Besides institutional investors, the new investors include DBS Private Bank and an insurer. DBS Private Bank clients committed close to US$70 million as part of this funding round.

They join anchor investors Khazanah Nasional, a Malaysian sovereign wealth fund; the Indonesia Investment Authority; and Temasek, which invests through its Aranda Principal Strategies platform.

The latest round of fundraising reflects growing investor interest in Asia’s mid-market financing gap, said Granite Asia. This follows an earlier close of US$350 million in December 2025.

This funding round comes amid a backdrop of slowing growth in Asia-Pacific private credit fundraising and deployment, according to a Moody’s Ratings’ report.

Redemption requests hitting global funds may temper capital flows to Apac. Coupled with macroeconomic uncertainty, geopolitical tensions and higher interest rates continue to weigh on investor appetite for illiquid assets.

Investors are becoming more discerning about the private credit market in Asia, with attention paid to how deals are originated, risks are assessed and capital is protected, said James Tan, group head of investment product and advisory at DBS.

Meanwhile, Asian companies still require financing for growth, acquisitions and business transformation, which creates opportunities for managers such as Granite Asia, he added.

Granite Asia raising more than its target of US$500 million in a difficult fundraising environment shows that the opportunity is still there, said Tan. “It signals that even in a more selective market, investors will continue to back managers with the right reach and expertise to originate and structure good deals,” he added.

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Granite Asia senior managing partner Jenny Lee said: “Welcoming partners across banking and insurance strengthens our ability to offer comprehensive financing, from equity to credit, with the same discipline and long-term partnership that define Granite Asia.”

Since launching in 2025, Libra Hybrid has executed eight transactions, completed two exits and made distributions to investors. It has invested in sectors including advanced manufacturing, consumer and healthcare – which benefit from Asia’s structural growth drivers and long-term fundamentals.

Ming Eng, managing partner and private credit lead at Granite Asia, noted: “We continue to see strong demand for private credit and hybrid capital from companies undergoing transformative growth, strengthening supply chains, expanding into new markets or modernising through technology.”