BlackRock Halts Fundraising for Asia Private Credit Fund

BlackRock paused fundraising earlier in 2025 for its third Asia-Pacific private credit fund. As per news reports, the suspension followed the December 2024 announcement of its plan to acquire HPS Investment Partners. The $1 billion fund had started raising capital in late 2023, but activity came to a stop as the merger process moved forward. 

The acquisition of HPS was completed on July 1, 2025.

Investor Activity and Fund Targets

As per news reports, the fundraising halt coincided with investor concerns. Arch Capital Group, a key participant in BlackRock’s private funds, has been in talks to sell at least $350 million worth of fund stakes. It also noted that the Asia-Pacific Private Credit Opportunities Fund II had secured less than half of its $1 billion target by mid-2025.

End of Mubadala Tie-Up

In June 2025, BlackRock and Mubadala Investment Co. mutually decided to unwind their private credit partnership. This came after both sides faced difficulties in sourcing deals in the region. The decision added to delays in building out BlackRock’s Asia credit platform.

Global Market Conditions

The challenges in Asia mirror pressures on private credit globally. JPMorgan Chase & Co. data shows that fundraising for the asset class reached $70 billion through July 22, 2025. This was about 10% of alternative asset inflows, the lowest share since at least 2015.

As per the JPMorgan report, defaults in private credit stood at 5.4% when including non-accrual loans, placing them on par with syndicated loan markets.

Read more: BlackRock and Saudi Aramco Partner on $11 Billion Natural Gas Deal!

BlackRock’s Broader Push

As per news reports, BlackRock has set a company-wide private markets fundraising target of $400 billion by 2030. The HPS acquisition forms a major part of this plan, although internal discussions on resuming the Asia-Pacific fund have yet to produce a timeline.

Conclusion

Fundraising for BlackRock’s latest Asia private credit fund has paused due to its HPS merger, investor stake sales, and weak deal flow. Broader market conditions continue to weigh on progress.

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