Granite Asia has achieved the first close of its pan-Asia private credit strategy, Libra Hybrid, securing more than US$350 million in commitments as investor appetite for non-dilutive financing accelerates across the region.
Anchored by Temasek, via its private credit platform Aranda Principal Strategies, Khazanah Nasional Berhad, and the Indonesia Investment Authority (INA), the strategy targets a total fund size of US$500 million.
Additional capital commitments came from global institutional investors, sovereign wealth funds, Granite Asia’s general partners, and the firm’s 25-year network of founders and entrepreneurs.
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Granite Asia has already deployed and committed roughly 30 per cent of the fund across six transactions, with more deals currently in execution. The strategy expands the firm’s long-standing track record in tech investing, which spans over 500 companies and 63 IPOs globally, into the fast-growing private credit arena.
Meeting rising demand for flexible, non-dilutive financing
Private credit has emerged as a key financing alternative for Asian businesses navigating supply-chain redesigns, market expansions, and technology-driven modernisation. Granite Asia aims to provide structured, non-dilutive capital to profitable enterprises undergoing such transitions.
“We’re seeing strong demand for private credit from companies undergoing transformative growth, redesigning supply chains, expanding into new markets, or modernising through technology,” said Ming Eng, Managing Partner at Granite Asia, who leads the firm’s private credit strategy.
“These businesses require not just financing solutions beyond traditional equity or debt, but a trusted partner with specialised expertise and a deep regional track record. This dynamic creates a compelling opportunity for our investors: access to Asia’s growth through a capital-preserving credit strategy that delivers stable yields, augmented by structured upside through value-add, such as revenue sharing, designed to pursue equity-like returns without taking on equity-like risk,” Eng added.
Jenny Lee, Senior Managing Partner at Granite Asia, added: “Private credit is a natural extension of our platform and reflects the evolving capital needs of the visionary founders and businesses we back. It strengthens our ability to provide comprehensive financing solutions –from equity to credit — built on the same discipline, insight, and long-term partnership that define Granite Asia. It reflects our proven ability to leverage our unique strengths and ecosystem to innovate and unlock value – partnering up with the region’s leading investors to drive growth across Asia.”
Growing team and pan-Asia coverage
To support its expanding private credit footprint, Granite Asia has doubled the size of its credit team this year, with Eng leading regional efforts. Momentum across the broader platform—which now spans venture, growth, and credit strategies with over US$6 billion in assets under management—continues to build amid rising demand for flexible capital solutions.
The Libra Hybrid strategy integrates credit investing with the firm’s deep tech expertise and operational value-creation capabilities. Its pan-Asia presence and proprietary sourcing channels, which include relationships with founders, corporates, financial institutions, and broader ecosystem partners, further strengthen deal flow and regional coverage.
Why private credit matters for Asia’s scaling companies
Private credit, typically structured as secured loans or mezzanine debt, offers an alternative to both equity and traditional bank financing. With more predictable income through interest and fees, it generally carries lower risk and provides moderate liquidity compared with private equity.
For Southeast Asia’s startup and mid-market ecosystem, Granite Asia’s first close marks a meaningful injection of capital at a time when bank lending remains constrained and scaling companies increasingly seek flexible, non-dilutive funding to support growth and digital transformation.
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Asia’s private credit market has expanded rapidly over the past three to four years, with the sector projected to grow from US$59 billion in 2024 to US$92 billion by 2027. Growth drivers include a rising middle class, urbanisation, infrastructure demand, and the retrenchment of traditional SME lending. Direct lending IRRs have hovered around 13–14 per cent, offering a yield premium compared with public markets.
A portfolio spanning Southeast Asia’s digital economy
Granite Asia’s portfolio includes many of the region’s most prominent tech and digital leaders, such as Sea Group, Grab, Gojek, Tokopedia, Bukalapak, OYO Rooms, Zalora, Carousell, Razer, PatSnap, ShopBack, RedDoorz, Klook, Lazada, Traveloka, Gogoro, Ninja Van, Carro, Kata.ai, and VGI Global Media — companies that collectively represent Southeast Asia’s rapid expansion in e-commerce, fintech, logistics, and digital media.
As the firm doubles down on its integrated venture, growth, and credit platform, the Libra Hybrid strategy positions Granite Asia at the forefront of a private credit wave reshaping how Asian businesses finance modernisation and scale.
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