Partner Steve Gallaugher and Special Counsel Simon Gray provided the New Zealand chapter to Baker McKenzie’s third edition of the Guide to Private Credit in Asia Pacific which focuses on key issues that a private credit provider should consider across 14 Asia Pacific jurisdictions. The guide provides both a high-level overview and a more detailed jurisdiction-by-jurisdiction analysis.
The guide observes that private credit is playing an increasingly important role on a wide range of financings including distressed and special situations credit, mezzanine facilities, infrastructure debt as well as senior financings to support leveraged acquisitions. Higher funding costs and increased regulatory scrutiny on banks have created a “financing gap” that is being filled by private credit providers who can offer flexibility and speed of execution.
In recent years, we have seen a large number of sizeable fundraisings by private equity funds, asset managers and credit funds focused on private credit investments in New Zealand and we expect this trend to continue. Private credit as an asset class has also been attractive to institutional investors in search of returns, risk diversification and more opportunities.
Read the Guide to Private Credit in Asia Pacific here.
