During the fireside chat, Roger Moh, the Managing Director, Head of Capital Solutions of VI Asset Management, spoke to Giovanni Amodeo about the future of private credit and gave an overview of technology and investment.

The chat began with an introduction to Moh’s work at VI Asset Management, where he runs the private credit fund. This fund is predominantly focused on investing in SMBs around the region in complex and bespoke situations, providing capital, advice, and services to help companies reach their next stage of development (00:00:00 to 00:01:51).

Discussing the evolution of private credit, Moh explained that it has been around for many years in Asia, but it is only recently that it has taken a formal shape as funds where investors can invest. He further talked about the attractiveness of private credit as an asset class across different economic cycles due to its uncorrelated and stable return above inflation rates (00:01:57 to 00:04:02).

When asked about the future of the industry, Moh stated that he sees Asia as a strong destination for private credit growth. He predicts that private credit funds operating today will either grow and become significant players or they will be moved out of the market. Moh also highlighted that Asia accounts for roughly about 7% of global private credit AUM but 40 to 45% of global GDP, indicating significant room for growth (00:04:08 to 00:06:15).

On the relationship with investors, Moh mentioned that investors have become much more sophisticated and educated about the product, asking more detailed questions about collateral packages, downside protection, and security processing. He also mentioned that private credit might make up a significant part of their fixed income generating portfolio in the future (00:06:33 to 00:07:11).

Discussing technology, Moh agreed that it has enabled the investment industry to be more efficient and transparent. He also mentioned the potential role of VI in making investment analysis and due diligence more efficient (00:23:24 to 00:24:34).

In conclusion, Moh expressed his aspirations for VI Asset Management to become one of the leaders in private credit in Asia (00:30:20 to 00:30:51).