(Bloomberg) -- Hong Kong-based alternative credit manager Tor Investment Management has raised $310 million for its third Asia opportunistic private credit fund, seeking to take advantage of the growing popularity of the asset class, according to co-founder and portfolio manager Christopher Mikosh.

Tor, which has $2.1 billion of assets under management, targets deal sizes of $50 million-$150 million, a range underserved by larger funds, Mikosh in an interview. On the other hand, local lenders are typically unable to extend above $25 million to $50 million, he said.

The $1.7 trillion global private credit market has become a serious rival to mainstream lending, attracting investors by offering higher, floating rates of return. While the Asia-Pacific share of assets is just a fraction of that sum, the rate of growth has outpaced that of other regions.

While a record wave of debt failures in the wake of China’s property crisis has pushed many investors to reduce their exposure to the country, Mikosh sees opportunities from it.

“It is impossible not to acknowledge the enormous amount of pain investors have suffered in China over the last few years,” Mikosh said. But the spillover from China’s unprecedented property debt crisis is creating significant opportunities in private credit across Asia, with demand for financing emerging in data centers, logistics and renewables, he added.

Meanwhile, the diverse legal frameworks that govern such transactions in the region could pose headwinds to private credit, Mikosh said.

“While there’s been certain progress in terms of creditors’ rights and efficiency of markets for exercising collateral rights, markets remain fragmented and somewhat idiosyncratic,” he said.

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