Private Credit Drops Safeguard to Win Deals on Wall Street Terms

Private credit firms are increasingly cutting safeguards typically seen in structured credit deals to outbid traditional Wall Street banks, according to recent fund activities. The shift comes as demand for alternative credit strategies grows among institutional investors seeking yield. KKR and Jadwa Investment have both closed or launched new funds in Asia-Pacific and the Gulf Cooperation Council (GCC) regions.

KKR raised $2.5 billion for its Asia-Pacific private credit strategy, the largest such fund in the region. The firm cited strong investor demand for flexible financing solutions amid structural economic themes like urbanization and digitalization.

Meanwhile, Jadwa Investment launched a SAR 750 million GCC-focused private credit fund, securing over SAR 300 million in its first close. The firm has already deployed capital into its first two investments with regional fintech partners.

BlackOpal, a payments finance platform, secured a $200 million anchor facility from Mars Capital Advisors for tokenized Brazilian credit card receivables. The product aims to deliver emerging market yields without the traditional credit risk.

Why the Move Happened

The growing appetite for private credit is driven by a shift in investor preferences toward high-yielding alternative assets. KKR's Asia-Pacific fund benefited from support from insurance companies, sovereign wealth funds, and pension funds, reflecting broader institutional interest.

Jadwa Investment highlighted the economic momentum in Saudi Arabia and the GCC as a key factor in its private credit strategy. The firm emphasized its deep regional expertise and origination capabilities as advantages in a fast-growing market.

In Brazil, BlackOpal is leveraging the country's highly automated credit card receivables market. The platform's structure eliminates credit risk by securing receivables through Brazil's Central Bank C3 Registry and Visa/Mastercard settlement infrastructure.

How Markets Responded

KKR's $2.5 billion raise underscores the firm's continued dominance in global private credit. The fund is expected to deploy $1.9 billion in investments across Asia-Pacific. SJ Lim, head of Asia private credit at KKR, called the region's long-term structural themes a "strong foundation" for private market growth.

Jadwa's new fund has already seen capital deployment, with two investments closed and two more expected by mid-2026. The firm's CEO, Tariq Al-Sudairy, noted the increasing importance of private credit as a strategic allocation for sophisticated investors.

BlackOpal's GemStone product is being positioned as a scalable solution for institutional investors. The firm's CEO, Jason Dehni, emphasized the product's institutional-grade design and lack of traditional credit risk.

What Analysts Are Watching Next

Investors are tracking how these funds perform in the coming quarters. KKR's Asia Pacific credit strategy will face competition from other private equity and credit-focused firms seeking to capitalize on the region's growth.

Jadwa Investment's ability to scale its GCC fund will depend on the success of its initial investments and broader economic conditions in the region. Fidaa Haddad, head of private credit at Jadwa, said the firm is "excited to deliver strong and consistent outcomes".

BlackOpal's tokenized receivables model is also drawing attention as a potential blueprint for other emerging market credit structures. Rick Pearson, CEO of Mars Capital Advisors, praised the platform's "structural protections" and said it opens a previously inaccessible asset class to offshore institutional capital.