Spotlight on Diane Raposio, Partner, Head of Asia Credit & Markets, Hong Kong, KKR
Global Thought Leader Spotlight
Diane Raposio, Partner, Head of Asia Credit & Markets, Hong Kong, KKR
In my role as the Head of Asia Credit & Markets at KKR, I am responsible for the firm’s Asia Capital Markets business as well as the Asia Credit investment platform, which spans private and liquid credit and is part of KKR’s Global Credit business.
I am a portfolio manager for our flagship Asia Private Credit Strategy and sit on the Asia Private Credit Investment Committee, the Asia Tactical Credit Investment Committee, and the KCM Capital Committee.
Key developments unfolding in Private Credit
First, we view defaults and risk as normalising, not deteriorating. As my colleague Chris Sheldon writes in CTRL + ALT + CREDIT, defaults across leveraged loans averaged 3.8% over the past three years and have not signalled sudden stress.
We see today’s environment as a recalibration, following an extended period of unusually low default rates. In our view, this transition is constructive: a repricing and risk calibration is underway, creating a compelling backdrop for credit investors seeking high-quality assets.
Second, dispersion and selectivity are accelerating. As private credit attracts a wider investor base, we believe it is important to remember that fundamentals and process matter. As credit investors, our north star is capital preservation and income generation. In direct lending, this translates to lending to stable, performing business with strong cash flows via directly originated senior secured loans, not taking bets on growth.
Recent headlines have demonstrated the risks of drifting from the basics of disciplined deployment and robust underwriting.
Third, private credit is an evolving and expanding opportunity set, one we believe is well positioned to navigate volatility. Notably, the direct lending market primarily comprises closed-end or permanent capital vehicles, with conservative leverage, strong liquidity profiles, and limited-to-no redemptions.
When traditional markets are constrained, private credit can remain available and continue to provide liquidity, serving as an important guardrail for the broader economy. Private credit is also more than just direct lending, spanning asset-based finance, capital solutions, private investment grade, and real assets.
Implications for sophisticated investors
For institutional and sophisticated investors, these dynamics reinforce the importance of manager selection, portfolio construction, and vintage discipline within private credit allocations. The economic backdrop remains full of crosscurrents - tariffs, geopolitics, monetary policy shifts, and persistent inflation are continuously reshaping the operating environment. As defaults normalise and dispersion widens, outcomes will increasingly be driven by underwriting quality, sourcing advantages, and restructuring capabilities. This environment rewards platforms with scale, deep sponsor relationships, and demonstrated credit cycle experience. In this context, selectivity is paramount. Our focus remains on deploying capital with discipline, without sacrificing structure or downside protection.
While headline credit metrics remain stable, this is not a time for complacency. Although some repricing is underway, markets are not cheap and many assets still feel priced to perfection, reinforcing the importance of rigorous credit selection and a focus on quality. At the portfolio level, private credit continues to offer compelling income and structural protections, but allocations should be built with resilience in mind.
In a market defined by uncertainty and episodic volatility, complacency is the greatest risk. By emphasizing durable income, resilient capital structures, and intentional diversification, investors can position portfolios to navigate 2026 with confidence while benefiting from an improving lending environment.
Diane will be presenting at Global Investment Institute’s upcoming Private Credit Investment Forum, taking place on Thursday, 14 May 2026 in Melbourne CBD, Victoria. To register your interest in attending, click here or for more information email zlatan@globalii.com.au.
Diane Raposio, Partner, Head of Asia Credit & Markets, Hong Kong, KKR
Diane joined KKR in 2013 and is a Partner in the firm’s Credit & Markets business. She is the Head of Asia Credit & Markets and the Portfolio Manager of Asia Private Credit. Diane is a member of the Asia Private Credit Investment Committee, the Asia Tactical Credit Investment Committee and the KCM Capital Committee.
Since joining the firm, Diane has led a number of credit investments in Asia and has also led a broad spectrum of debt, equity, and structured financings for KKR and third party clients.
Prior to joining KKR, she spent six years in the leveraged debt capital markets team at Deutsche Bank (across London, Hong Kong and Sydney), UBS, Barclays, Bankers Trust and AMP.
Diane is a qualified actuary (FIAA) and holds a Masters of Economics from Macquarie University.
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