Co-lending makes headway as South-east Asia’s private credit space matures

PRIVATE credit managers are making inroads into South-east Asia with co-lending offerings, as the industry grows and investors develop a deeper understanding of the asset class.

Co-lending is to private credit what co-investing is to private equity: instead of putting money into a fund, which then lends the money to a variety of borrowers, limited partners (LPs) commit to lend money to one borrower.

The general partners (GPs) manage the transaction much as they would a private credit fund, but co-lending allows LPs to have greater control over where their money goes as well as over deal terms.