BlackRock stops raising money for new Asia private credit fund

BlackRock stops raising money for new Asia private credit fund

BlackRock Inc. has paused fundraising for its latest Asia private credit fund, a move that adds uncertainty to the firm's ambitions in the region's fast-growing private credit market. The New York-based asset manager had been targeting roughly $1 billion for the fund, with fundraising initially launched in the fourth quarter of 2023. The pause came amid the firm's recent acquisition of HPS Investment Partners, a private credit firm, which was completed on July 1, 2025 [1].

The integration of HPS has led to internal discussions with HPS executives on how to proceed, but it remains unclear when these talks will take place. The move comes amid a series of challenges for BlackRock’s private credit operations. Arch Capital Group, a key investor in several of its private funds, is reportedly in discussions to sell at least $350 million of stakes following disappointing performance and senior departures. Additionally, BlackRock Asia-Pacific Private Credit Opp. Fund II had raised less than half of its $1 billion target prior to the pause [1].

The pause in fundraising for the new Asia private credit fund is part of a broader strategy by BlackRock co-founder Larry Fink to cement the firm’s future in private markets. BlackRock recently set its first-ever firmwide target for private market fundraising at $400 billion by 2030. Analysts say the acquisition positions BlackRock to expand its lending capabilities and capture growth outside traditional public markets, but integrating two large operations in a complex region will be closely watched by investors [2].

Private credit, which involves lending by non-bank institutions, has grown rapidly as global investors seek higher yields outside traditional fixed income. BlackRock had positioned its Asia-Pacific strategy as a key growth driver, but the combination of investor pullbacks, fundraising delays, and the HPS integration has cast a shadow over its near-term prospects [2].

Despite these challenges, BlackRock remains the world’s largest asset manager, overseeing more than $10 trillion in assets. The firm has emphasized the strategic importance of private markets for its long-term growth, but execution risks remain significant as it navigates a competitive and evolving Asia-Pacific landscape [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-25/blackrock-paused-fundraising-for-latest-asia-private-credit-fund
[2] https://slguardian.org/blackrock-pauses-asia-private-credit-fund-amid-hps-merger/