Swiss private markets firm Partners Group has closed a new $1 billion private credit mandate with an unnamed major institutional investor in Asia.

The mandate combines a discretionary tranche managed by Partners Group with co-investment capital and uses an open-ended evergreen structure designed to provide flexible, long-term exposure to private credit across the region.

The portfolio will invest in senior and junior direct lending opportunities across Asia-Pacific, diversified across sectors and jurisdictions. Partners Group has been investing in private credit in Asia for 15 years.

Institutional Demand Accelerates

The deal is the latest in a series of sizeable mandates won by the Swiss firm in Asia. Partners Group has closed more than five mandates with major institutional investors in the region over the past year.

These include an €800 million mandate for a regional sovereign wealth fund seeking direct private equity and infrastructure exposure across Asia and Europe. The firm has also developed bespoke solutions for institutional investors in Greater China, Japan, Malaysia, Singapore and South Korea.

Kevin Lu, Chairman of Asia at Partners Group, said institutional investors are increasingly seeking to build private markets exposure closer to home.

Within private credit, sovereign wealth funds and insurers – particularly in Southeast Asia and Japan – are increasing allocations because of what Partners Group sees as attractive risk-adjusted returns relative to public fixed-income portfolios.

$40 Billion Private Credit Business

The mandate also highlights the growing importance of customized structures in private markets, as large investors seek greater control over capital deployment and portfolio construction rather than relying solely on traditional commingled funds.

Partners Group now manages more than $40 billion in private credit assets globally. The Zug-headquartered firm has more than $186 billion in total assets under management across private equity, private credit, infrastructure, real estate, royalties and special opportunities.

Asia has meanwhile developed into a sizeable operational base for the firm. Partners Group established its Singapore office in 2004 and today employs more than 550 people across Hong Kong, Manila, Mumbai, Seoul, Shanghai, Singapore and Tokyo.