Private markets continue to expand

As we step into 2026, we wish you a very happy New Year and a purposeful, prosperous year ahead.

The start of a new year often brings an urge to move fast — to reopen funding conversations, restart processes, and “get ahead” strategically. But recent market dynamics point to a more enduring truth: in today’s capital markets, speed alone rarely delivers the best outcomes. Clarity does.

In 2026, businesses that prepare thoroughly, position themselves clearly, and think structurally about capital will have more options, better terms, and greater control over their growth journeys.

Private markets continue to expand — with nuance

Private markets, including private credit, are expected to remain a central financing avenue in 2026. Industry research suggests they continue to reshape how businesses finance growth and how investors construct diversified portfolios, with private credit playing an expanding role alongside public markets.

This expansion is supported by long-term trends:

Growing demand for diversification beyond public markets
Private credit filling gaps where bank lending is constrained
New structures and segments widening the capital toolkit

However, growth is not uniform. Capital availability exists alongside selective lender confidence — a theme increasingly echoed across institutional outlooks.

How private credit lenders assess readiness in 2026

Capital is available. Conviction is selective.

As refinancing needs rise and more companies seek funding, demand for private credit may begin to outpace supply. This allows lenders to preserve discipline and reinforce terms rather than chase volume.

Capital isn’t scarce — but conviction is earned.

We’re seeing three consistent patterns:

Cash flow quality matters more than topline growth, with precise and defensible projections standing out
Governance, reporting, and decision-making clarity carry greater weight
A clearer separation between being fundable and being well-prepared

In 2026, preparation isn’t a formality — it’s a strategic asset.

What clarity looks like in practice

Clarity doesn’t mean caution alone — it means purposeful preparedness.

From a lender’s perspective, clarity shows up when a business can articulate:

Why capital is needed now, linked to a defined operational or strategic milestone
How capital will be deployed, tied to growth levers and risk management
What the repayment path looks like across scenarios, not just the base case

Stress-tested assumptions and credible data narratives build confidence with underwriting teams. Businesses that bring this level of clarity tend to move faster through diligence, secure better-aligned terms, and retain structural flexibility.

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Deal structures are quietly evolving

Standardised facilities are increasingly giving way to bespoke solutions shaped around real business dynamics, such as:

Custom amortisation schedules
Bullet or back-ended repayments
Layered capital stacks aligned with cash conversion cycles

These structures aren’t granted by default. They’re earned through clarity and justified risk understanding. Clarity influences not just whether capital is raised, but how it’s structured.

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Why Q1 matters more than it seems

January doesn’t just start the year — it shapes the outcomes that follow.

The strongest raises don’t begin with urgency. They begin with preparation. Founders and CFOs who use early 2026 to:

Strengthen reporting frameworks
Refine their capital narrative and valuation archaeology
Align internally on priorities and timing

This preparation matters. It allows funding conversations later in the year to be approached with greater confidence, leverage, and optionality.

Not raising yet is often a strength — not a weakness.

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Upcoming Webinar | Join Us for APAC Market Pulse 2026

As part of this early-year focus on preparation, we’re hosting a live APAC Market Pulse webinar exploring how private credit markets across the region are evolving as we head into 2026.

The session will unpack what lenders are prioritising today, how expectations differ across APAC jurisdictions, and the borrower playbooks that consistently lead to better funding outcomes—particularly in sponsorless processes.

3rd February 2026 | 13:00 SGT

Live | APAC-focused | Practical borrower insights

Looking ahead with clarity and confidence

As 2026 unfolds, private credit and broader private capital markets will continue to play a pivotal role in financing growth. While lenders remain selective, the structural strength of private markets points to resilience and opportunity.

At Fuse Capital Group, our work begins long before a deal is executed. It starts with introspection, disciplined preparation, and clarity of purpose — helping businesses find the right capital partner, at the right time, on the right terms.