Why Temasek, Khazanah and INA Are Backing Granite Asia’s US$500M Private Credit Bet on Asia

Granite Asia’s Libra Hybrid fund, now past US$350 million in first close, shows how state-backed capital and tech-focused investors are converging around private credit as Asia’s next growth engine.

Singapore-based Granite Asia has secured over US$350 million in the initial close of its new Pan-Asia private credit fund, Libra Hybrid. Aiming for a total pool of US$500 million, the strategy is built to offer adaptable, non-dilutive capital solutions to businesses across the region.

The first close is supported by several major state-linked investors in the region, including Temasek—investing through its Aranda Principal Strategies platform—alongside Malaysia’s Khazanah Nasional and the Indonesia Investment Authority (INA). The fund also attracted capital from a broader mix of global institutions, sovereign funds, Granite Asia’s partners, and members of its long-established founder and entrepreneur network.

A First-Close That Is Already Active

Unlike many funds that sit on dry powder after a headline close, Libra Hybrid is already at work. Granite Asia says around 30% of the capital has been deployed or committed across six transactions, with several more deals in progress. 

The early portfolio focuses on growth-stage and established companies that need:

• Structured, non-dilutive capital instead of straight equity
• Flexible financing to redesign supply chains, enter new markets, or modernise via technology

This fits a broader trend: as interest rates stay higher for longer and equity markets remain selective, founders and CFOs are increasingly open to private credit as a “third lane” between bank loans and equity dilution.

Asia’s Private Credit Moment

Granite Asia’s timing is not accidental. Asia-Pacific’s private credit market is still small compared to the US and Europe, but it is growing fast.

A recent report from the Alternative Investment Management Association (AIMA), Simmons & Simmons, EY and Broadridge projects that APAC private credit AUM will rise 46% from about US$59 billion in 2024 to US$92 billion by 2027, driven by institutional and wealth investors seeking yield and diversification. 

At the same time:

• Bank lending standards are tighter, especially for mid-sized or non-investment-grade borrowers. 
• Public debt markets in Asia remain relatively shallow compared to GDP, leaving a funding gap that private credit can fill. 

Granite Asia is effectively positioning Libra Hybrid to sit right in the middle of this structural shift—offering bespoke financing to companies that are too sophisticated for vanilla bank loans but not ideal candidates for frequent equity raises. g

What Libra Hybrid Actually Offers Borrowers

Ming Eng, Managing Partner at Granite Asia and lead for the private credit strategy, describes demand coming from companies in “transformative growth” mode—those:

• Rewiring supply chains
• Expanding into new geographies
• Or modernising via technology

These companies often want predictable cash flows and control over dilution, which makes structured private credit attractive.

Eng characterises Libra Hybrid as a “capital-preserving strategy with structured upside”: investors receive yield from performing credit, but the fund can also integrate features such as revenue-sharing, warrants or performance-linked payouts that create equity-like upside without taking full equity risk.

From GGV Asia to Granite Asia: Why This Move Matters

Granite Asia is not a new name in the ecosystem—it is the Asia spin-out of GGV Capital, created after GGV separated its US and Asia operations in 2023 amid US scrutiny over China tech exposure.

Over roughly 25 years, the team has:

• Backed 500+ companies
• Supported dozens of IPOs globally
• Helped build 48+ billion-dollar companies in Asia, according to firm disclosures.
  

Jenny Lee, Senior Managing Partner, frames private credit as a natural extension of that history. Instead of only writing equity cheques into tech and growth companies, Granite Asia now wants to serve the same founder base with a broader capital toolkit—from venture and growth to structured credit—while leveraging its tech expertise and operational networks.

This matters because founders in Asia’s tech and “tech-enabled traditional” sectors increasingly face:

• Profitability pressure from public and private markets
• Longer IPO timelines
• And a need to fund AI, cloud, and digital transformation projects that may not fit traditional loan boxes.

Libra Hybrid gives Granite Asia a way to stay in these cap tables—sometimes without being in the cap table at all.

Why Sovereign Investors Are Leaning In

That Temasek, Khazanah and INA are anchor backers is a strong signal.

For these sovereign investors, the strategy checks several boxes:

• Regional exposure: It is explicitly Pan-Asia, matching their geographic mandates. 
• Real-economy impact: Capital is going into companies upgrading supply chains, digital infrastructure and cross-border expansion.
• Risk–return profile: Private credit offers yield with downside protection, at a time when global bond markets are volatile and equity valuations uneven.

It also fits a broader sovereign trend of raising allocations to alternatives, especially strategies that can support national priorities such as industrial upgrading, digitalisation and regional integration.

Building a Multi-Asset Tech-Led Platform

Granite Asia now runs a multi-asset platform across venture, growth and credit, with more than US$6 billion in assets under management. The firm says its credit team has doubled in size this year, reflecting both deal flow and the strategic importance of the strategy. 

The differentiator the firm keeps coming back to is integration:

• Credit decisions are informed by 25 years of tech investing experience.
• Sourcing comes from founders, corporates, and regional financil partners who already know the firm.
• Portfolio companies can tap not only lending capital, but also operational support, equity co-investors and cross-border networks.

For founders and CFOs in Asia’s growth companies, that could make Libra Hybrid more attractive than a generic direct lender whose only offer is cheaper capital.

A Signal on Where Asia’s Capital Stack Is Headed

Granite Asia’s US$350+ million first close for Libra Hybrid is more than just another fund announcement—it’s a marker of how Asia’s capital stack is evolving.

A few takeaways:

• Private credit is becoming mainstream in Asia, with APAC AUM projected to reach US$92 billion by 2027. 
• State-backed giants like Temasek, Khazanah and INA are not just backing equity growth funds; they are now anchoring structured credit strategies.
• Tech-focused platforms like Granite Asia are expanding beyond venture and growth into flexible credit, giving founders more options than “raise equity or go to the bank.”

The next phase of Asia’s tech and innovation story won’t be funded by equity alone. Private credit, especially when paired with deep sector expertise, is becoming a core part of how scaling companies finance transformation.

If Libra Hybrid executes well—deploying capital prudently, generating steady returns, and helping portfolio companies grow—it could become a blueprint for the next generation of Pan-Asia private credit platforms built on tech investing DNA.

Quick Takeaways

• Granite Asia raises US$350M+ in the first close of its Pan-Asia private credit fund, Libra Hybrid, targeting a final size of US$500M.
• Backed by major sovereign investors including Temasek (via Aranda Principal Strategies), Khazanah Nasional, and Indonesia Investment Authority (INA).
• Around 30% already deployed across six deals, with more transactions underway.
• Rising demand for private credit driven by companies reworking supply chains, expanding regionally, and modernizing through technology.
• The fund aims to provide structured, non-dilutive capital—an alternative to traditional equity or bank lending.
• Granite Asia now manages over US$6B across venture, growth, and credit, leveraging a Pan-Asia network built over 25 years.
• Asia’s private credit market is forecast to grow 46% to reach US$92B by 2027, outpacing global trends.