The practice may catch on as roles of banks change, and they look to boost expertise or diversify portfolio
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.
