Singapore's sovereign wealth fund GIC is nearing a deal to sell roughly US$2 billion in private credit stakes, according to multiple sources [1, 2, 3]. The firm has hired Evercore Inc to advise on the portfolio sale [1, 2, 3].
GIC has been invested in private credit—a market involving loans from non-bank financial institutions to companies—for several years and is seeking to trim some of its maturing holdings [1, 2, 3]. This follows last year’s move when GIC began exiting at least US$1 billion in private equity fund assets managed by firms like Blackstone Inc and Apollo Global Management Inc [1, 2, 3].
Earlier this year, GIC redeemed US$250 million from New York-based hedge fund Jain Global before the fund decided to return all external capital and focus solely on managing money for Millennium Management [1, 2, 3].
The private credit secondaries market, where investors buy and sell fund stakes, has seen rapid growth. Transaction volumes rose from about US$11 billion in 2024 to roughly US$20 billion last year [1, 2, 3]. Institutional investors increasingly use these secondary sales to rebalance portfolios [1, 3]. For example, the Florida State Board of Administration sold US$2.7 billion in private credit stakes to Banner Ridge Partners and Pantheon Ventures last year [1, 3].
Concerns about rising default risks have grown. Borrowers including First Brands and Tricolor filed for bankruptcy late last year [2]. Ratings agencies forecast higher private credit default rates in 2026 globally and particularly in the Asia-Pacific region, projecting a 2.25% default rate by September 2026 there [2]. The US private credit default rate reached 5.2% by October 2025 [2].
The exact timing of GIC’s private credit sale has not been disclosed. However, given the firm’s active portfolio pruning earlier this year and the hiring of Evercore, the transaction appears close to completion [1, 2, 3].
