Half of Investors Eye Emerging Market Private Credit

According to a survey by Gemcorp, nearly half of investors plan to increase their allocations to private credit assets in emerging markets (EM). This trend is shaped by shifts in global interest rates and the search for alternative yields. The survey reveals that EM private credit offers a more attractive risk-reward profile compared to traditional fixed-income assets. A large portion of participants noted that this asset class presents significant opportunities for portfolio diversification and yield potential. In particular, institutional investors seeking higher returns in a low-interest-rate environment are turning to EM private credit. The survey indicates that growth in this area is supported by sectors such as infrastructure projects and the energy transition in emerging economies. Gemcorp's research highlights that investor interest in EM private credit is increasing due to lower borrowing costs in these markets and an improving regulatory environment. However, some participants remain cautious about liquidity risk and political uncertainties. The survey suggests that demand for this asset class could rise further in the coming period. This is not investment advice.