Allianz Global Investors (AllianzGI) has landed $744 million in investor commitments at the initial closing of its Allianz Asia Pacific Secured Lending Fund III.

The vehicle is designed to let institutions invest alongside Allianz in secured lending opportunities in the region’s middle market, the company said in a press release.

The fund is the third installment in the manager’s Asia-Pacific middle-market lending series and excludes China from its target footprint. The strategy’s focus includes companies in Southeast Asia, South Asia and Oceania, with an emphasis on businesses tied to longer-duration growth themes such as healthcare, education, digital infrastructure and the energy transition.

The fund also looks for borrowers with steady earnings and cash generation, strong competitive positions and solid governance.

"We believe that Asia Pacific continues to offer a compelling opportunity set for private credit investors, particularly in the middle market, where access to flexible capital remains limited,” said Sumit Bhandari, head of Asia Private Credit at Allianz Global Investors.

“With our established deployment track record across the region, our platform is well-positioned to originate proprietary opportunities and provide flexible capital solutions to high-quality middle-market businesses,” Bhandari continued. “We remain focused on disciplined underwriting, which should help limit downside potential and generate competitive risk-adjusted returns for investors, and are pleased to see strong support from many of our existing investors in the AAPSLF III."

AllianzGI attributed part of the opportunity set to a widening gap in non-bank funding as banks pull back and regulation tightens across the region. 

The manager said its Asia private credit effort has been in place since 2018 and is supported by a broader private markets group of about 170 investment professionals globally, overseeing roughly $110  billion in private markets assets as of March 31, 2026.

Private Equity Firms Are Targeting Asia-Specific Funds

Despite a challenging fundraising environment, a large number of Asia-Pacific funds are on the road raising capital.

KKR & Co. (NYSE:KKR) and Capital Group are working on the launch of a public-private credit fund.

The fund, which will be launched in Asia this year, will target both public and private investments as a ‘’more liquid, cheaper, and more transparent" option, Capital Group CEO Mike Gitlin told Bloomberg.

Private equity firm EQT has raised $15.6 billion for its private equity Asia Fund, as investors seek diversification across both asset classes and regions. The fund, which received capital from 75 new investors, had originally sought to raise $12.5 billion when it was launched in 2024

Meanwhile, Blackstone raised more than $12 billion for its Asia fund, while Bain Capital added $10.5 billion to its sixth buyout fund.

Approximately 60 Asia-Pacific-focused funds over $1 billion are currently fundraising, representing more than 10% of global targets, well above the region’s 5% share of recently closed funds, according to a report from Bain & Company.

This gap points to a potential rebound in 2026 but also signals tougher competition for capital as limited partnerships stay selective. Early commitments to several large funds suggest fundraising may begin to recover in 2026.

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