Private credit activity is on track for its strongest year ever in emerging markets, with $11.7 billion deployed in the first half of 2025, nearly matching the entirety of last year’s investments. This surge is largely driven by prominent global firms such as Blackstone, Apollo, KKR, and Ares, which are engaging in landmark transactions across regions including India, Southeast Asia, Eastern Europe, and the Gulf.
India has emerged as a leader in private credit activity, fueled by Prime Minister Narendra Modi’s infrastructure initiatives. Noteworthy financings include a substantial $3.4 billion package for the Shapoorji Pallonji Group, backed by financial heavyweights Ares, Cerberus, Davidson Kempner, and Farallon. Additionally, Apollo has committed $750 million for the development of Mumbai’s airport, signaling strong confidence in the region’s growth potential.
In Europe, Blackstone and HPS Investment Partners have invested €1.3 billion into the Romanian gaming platform Superbet, while Southeast Asia recorded $1.1 billion in deal flow. Despite emerging markets contributing roughly half of global GDP, they still represent less than 10% of the $1.7 trillion private credit market. This disparity is being addressed by rising deal sizes and the establishment of new locally-focused funds, which are beginning to shift the investment landscape.
For instance, in September, India’s EAAA India Alternatives successfully raised $510 million for its inaugural credit fund, while Czech-backed Aspire11 launched a €500 million vehicle aimed at channeling pension savings into private capital initiatives. The Gulf region is also positioning itself as a burgeoning hub for private credit, with Saudi Arabia’s Public Investment Fund anchoring new Goldman Sachs-managed vehicles that focus on private credit and equity investments across the GCC.
The appeal of these investments for limited partners (LPs) lies in diversification, higher yields, and exposure to economies that are expanding at a faster rate than those in developed markets. As this trend continues, it is expected to create significant opportunities for investors and reshape the dynamics of private credit in the emerging markets sector.