Private Credit Is On Course for Biggest Year in Emerging Markets

Private credit funding in emerging markets is on track for its largest year on record, attracting significant capital from major lenders such as Blackstone Inc. and Apollo Global Management Inc. Deployments reached $11.7 billion in the first half, a figure that already nearly equals the previous full-year total, signaling robust growth and increasing institutional interest in EM deals.

Analysis

Private credit investment in emerging markets is demonstrating unprecedented momentum, positioning 2025 to be a record-breaking year. Capital deployed in the first half of 2025 reached $11.7 billion, a figure that nearly equals the entire full-year total for 2024, according to the Global Private Capital Association. This accelerated flow of capital is being driven by prominent financial institutions such as Blackstone Inc. (BX) and Apollo Global Management Inc. (APO), signaling strong institutional conviction in the asset class. The significant participation of these major private lenders underscores a broader strategic shift toward EM private credit, as investors seek higher yields and diversification in developing economies.

Key Decisions for Investors

• Investors should consider increasing exposure to the emerging markets private credit theme, either through specialized funds or by evaluating the publicly traded asset managers like Blackstone and Apollo that are leading this deployment.
• Given the rapid acceleration of capital inflows, it is crucial to monitor the sustainability of this trend and scrutinize the credit quality of underlying deals for any signs of deteriorating underwriting standards.
• The positive sentiment and significant involvement of major firms suggest that BX and APO could see enhanced earnings and AUM growth from their private credit segments, warranting a closer look at their specific EM strategies and portfolio performance.