Singapore-based investment firm Granite Asia is looking for private-credit opportunities among mid-sized Asian companies, particularly in areas including advanced manufacturing and healthcare, Managing Partner Ming Eng told Reuters after the firm raised more than $500 million for its Libra Hybrid strategy.

The comments provide more detail on how Granite Asia plans to deploy the capital. The firm is targeting companies that have access to bank lending or equity but may prefer private credit when they want to raise capital without diluting ownership.

Middle market remains the focus

Libra Hybrid launched in 2025 and has completed eight transactions and two exits. Granite Asia said the strategy has already distributed returns in the teens, although it did not disclose a precise figure.

Eng said the fund does not have a fixed cap on its eventual size, but Granite Asia is currently focused on deployment rather than additional fundraising. The strategy is geographically agnostic across Asia and is looking at themes including digitalization, regionalization and supply-chain adjustment.

Private credit sits between traditional bank lending and equity. For companies, it can offer more flexible structures than conventional loans while avoiding some of the ownership dilution associated with a new equity round. Investors, in turn, take on credit and execution risk in exchange for potentially higher returns.

Asia market still developing

Reuters cited projections that Asia’s private-credit market could grow from $59 billion in 2024 to $92 billion by 2027, with Australia, India, Japan and Singapore among the markets driving expansion. Even at that size, the region remains less developed than the private-credit markets in the United States and Europe.

Eng said lower saturation leaves room for different lenders to pursue niches based on sector, geography and deal structure.

TNGlobal covered the Libra Hybrid fundraise on August 25, when Granite Asia announced that commitments had surpassed $500 million. The latest comments focus on deployment strategy rather than the raise itself.

That distinction is important as competition in Asian private credit grows. Granite Asia is positioning the middle market as a segment where borrowers may value flexible capital even when conventional financing remains available.

Granite Asia raises over $500M for Pan-Asia private credit fund Libra Hybrid