DBS Private Bank Raises Capital for Granite Asia's Private Credit Fund Offering Up to 20% Yield

DBS Group Holdings' private banking arm has been tapped to raise capital for Granite Asia's inaugural private credit vehicle, with the fund marketing yields reaching as high as 20% to wealthy clients, according to sources familiar with the arrangement. The collaboration signals growing appetite among Asian high-net-worth investors for alternative credit products that promise returns well above traditional fixed-income instruments.

Granite Asia, a Singapore-based investment firm, is seeking additional capital for its first private credit fund through DBS's wealth management channels. The involvement of Southeast Asia's largest bank by assets provides institutional credibility to the fundraising effort, while the headline yield figure positions the product competitively in a market where investors are increasingly hunting for income-generating opportunities outside public markets.

The arrangement highlights the expanding footprint of private credit in Asia's wealth management landscape, as banks and asset managers respond to client demand for higher-yielding alternatives. Private credit funds have proliferated globally, but the sector faces scrutiny over transparency, valuation practices, and liquidity risks. For DBS, the partnership represents an opportunity to deepen relationships with affluent clients seeking diversified return streams, though the elevated yield target also raises questions about underlying risk exposure and credit quality. Neither DBS nor Granite Asia has publicly disclosed the fund's size, investment strategy, or target investor profile.