A woman walks next to a BlackRock sign pictured in the Manhattan borough of New York, October 11, 2015. REUTERS/Eduardo Munoz

Tighter financial conditions are driving the growth of private credit, particularly in Asia, where the asset class is still nascent compared to markets in the US and Europe, said Neeraj Seth, BlackRock’s Head of Asian Credit.

In an interview with DealStreetAsia, Seth said while the current market environment is accelerating the adoption of private credit as an alternative to traditional bank lending, the flexibility offered by the structures to businesses will drive longer-term growth.