The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
Heading 3
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
In today’s evolving capital markets, investors face a defining question: Where should the next dollar go? Should it rest on the resilience and stability of private credit, or should it chase the explosive growth potential of venture capital?
To address this question, two industry leaders came together for a lively and candid debate. Representing private credit was David Z. Wang, Co-Founder and Chief Executive Officer of Helicap Securities. David spent a decade in investment banking with Morgan Stanley and Nomura before launching Helicap in 2018, building a tech-driven platform that connects global investors to private credit opportunities across Asia. He has been named a Top FinTech Leader by the Singapore FinTech Association and honoured as part of FinTech Frontier’s Emerging 35, recognising the top 50 FinTech founders in Southeast Asia.
On the other side was Qin En Looi, Partner at Saison Capital. Qin En leads early-stage investments in FinTech, commerce, and Web3, as well as fund-of-funds in venture capital. He spearheaded Credit Saison’s digital asset strategy and co-founded ONCHAIN, Asia’s first real-world asset conference. Previously, he co-founded Glints, Southeast Asia’s leading talent ecosystem, and was named to Forbes 30 Under 30 and Entrepreneurs 27 Under 27 as one of the youngest founders in the region to raise venture capital.
What followed was not a collision of asset classes, but a rich dialogue that gave a rare inside view into how two different schools of capital think about risk, opportunity, and timing.
Relive the full debate below:
Private Credit as a Discipline
David opened his case with poise and conviction, emphasizing that private credit is not a game of speculation but a discipline of structured, responsible lending.
“At its core, private credit is non-bank lending. We raise capital from investors and deploy it as loans to businesses with proven revenues and cash flows. Unlike equity, our focus is not what could go right, but what can reliably go right.”
Helicap’s investment process is deliberately rigorous. Out of every hundred companies assessed, only a select few make the cut. As David explained the key is to avoid concentration risk, even a single default can weigh heavily on portfolio performance. That is why careful screening, well-structured covenants, and continuous monitoring form the backbone of Helicap’s approach.
The loans themselves are deliberately shorter in tenor, typically spanning one to five years, giving investors both liquidity and visibility. The result is a portfolio designed to generate steady, predictable returns. “This is about protecting principal,” David said, “while still delivering attractive yields.”
Venture Capital as a Vision
Qin En responded by framing venture capital as the arena of imagination and conviction.
“Venture capital is about spotting what the world has yet to see. It is about backing entrepreneurs who are building not for today, but for the decade ahead.”
Venture capital follows the power law. From a portfolio of twenty investments, one or two outsized winners generate the bulk of returns. This requires conviction and patience. The ability to ride themes with global potential, from social media, blockchain to artificial intelligence.
But, venture funding provides more than capital. It brings founders into powerful networks, lends credibility, and creates a signalling effect that can accelerate growth. At the same time, it comes with trade-offs: equity dilution, long horizons, and the unrelenting pressure to scale.
Two Approaches to Risk
The debate revealed two philosophies of risk.
Private credit mitigates risk through structure. It relies on measurable data, contractual protection, and enforceable rights. Returns are derived from ongoing business performance rather than future promises.
Venture capital embraces risk in search of asymmetric upside. Failures are accepted, even expected, because one or two extraordinary outcomes can more than cover losses.
Timing matters too. In buoyant markets, venture capital captures attention with the allure of exponential growth and transformative ideas. Investors are drawn to bold bets that could define the next decade.
But when the environment turns uncertain or volatile, the focus shifts. Private credit takes center stage as the steady anchor, offering stability, predictable income, and protection of capital. It is less about chasing the next big wave, and more about delivering consistent returns in turbulent seas.
Culture and Perception in Asia
The debate also touched the cultural attitudes toward financing in Asia. Debt is often viewed as undesirable or risky compared with equity, a perception both speakers were quick to challenge. David noted that the world’s largest corporations rely on credit as a cornerstone of growth. Used responsibly, backed by cash flows and discipline, borrowing can be a powerful engine for expansion.
Qin En added that too often founders chase venture funding for ego as much as necessity.
"Raising venture capital is seen as glamorous. You get headlines, panels, and recognition. But at the end of the day, nothing beats cash flow and revenue. Venture capital is not a badge of honour. It is a tool for a specific growth trajectory.”
Convergence and Hybrid Models
Both speakers agreed that no company stays tied to a single form of financing forever. Startups often begin with venture funding to fuel their early growth, then turn to private credit once revenues become steady and predictable. Increasingly, hybrid structures are emerging, blending equity and credit to strike a balance between ambition and discipline.
Reflections
In the end, the debate revealed less of a rivalry and more of a continuum. Private credit and venture capital are not opposing forces but complementary tools, each suited to different moments in a company’s journey and different cycles in the market.
The takeaway was clear. The smartest portfolios will not choose one side over the other, but will learn to recognise when it is time to chase growth and when it is time to anchor in stability.
Audience Q&A
The closing session opened the floor to direct questions from participants, drawing out practical contrasts between the two asset classes.
Private Credit structures: Asia vs the West
Question: Are there private credit structures or trends in the US, Europe, or Australia that you take inspiration from when structuring deals for Asian borrowers, or is the ecosystem entirely different?
David Z. Wang (Private Credit)
The fundamentals of private credit are universal. Legal frameworks, covenants, and investor protections in Asia mirror those established in the US and Europe. What makes Asia unique is the architecture of its deals. Many involve Singapore holding companies with subsidiaries across markets such as Indonesia, the Philippines, Korea, or Japan. This multi-layered environment demands additional structuring and due diligence, but the core principles remain the same. Much of the regulatory motivation and frameworks in Asia, such as those provided by the Asia Pacific Loan Market Association (APLMA), have been shaped by practices in the US and Europe. The difference lies less in the fundamentals and more in the complexity of cross-border structures.
Investment duration
Question: Coming from a second-generation wealth perspective, how should one think about entering private credit or venture capital as an investor?
Qin En Looi (Venture Capital):
Venture capital is a long game. Most funds are structured over a ten-year horizon, often with extensions. Real liquidity events can take years to materialise. Investors need to be comfortable with the idea that returns will not be immediate. It is a patient capital model, and the question for any investor is whether they are prepared to wait a decade or more to see meaningful distributions, in the form of cash returns rather than just paper gains.
David Z. Wang (Private Credit)
Private credit, by contrast, operates on much shorter timelines. Loan structures typically range from two to five years, offering earlier visibility on returns. For investors, this provides an attractive complement to equity strategies within a diversified portfolio, balancing patience with predictability.
Risk appetite and the venture capital model
Question: The power law clearly fits the venture capital mindset, but is there space in this industry to adopt a more cautious approach? Dry powder reserves have been rising consistently since Covid, which makes me curious.
Qin En Looi (Venture Capital)
It is possible to take a more cautious stance, but that inevitably changes the profile of outcomes. Lower risk means backing companies that are less likely to fail, but also less likely to achieve billion-dollar valuations. At the end of the day, fund managers are accountable to the limited partners who provide the capital. If a venture fund invests in companies that look more like traditional businesses, then investors may rightly ask why they are paying high venture capital fees, when similar exposure could be achieved through public markets or an Exchange-Traded Fund (ETF).
To put this into context, venture capital is one of the most expensive asset classes. Across a ten-year fund, the typical fee structure is 2% annually, plus 20% of profits. That means investors are effectively down 20% on paper the moment they commit. The only way to justify this is by identifying those rare winners capable of delivering outsized returns. When a fund delivers three to four times invested capital, or an Internal Rate of Return (IRR) of 20 to 25% over a decade, the fees become an acceptable cost. But the question always remains whether investors are comfortable with the risk and the patience that model demands.
Private credit vs venture at the early stage
Question: Why are more venture capital firms starting private credit funds? Is private credit becoming more attractive because of its steady returns? What does this mean for early-stage founders who rely on venture capital?
David Z. Wang (Private Credit)
At that stage, venture capital is the more realistic option. Private credit is typically suited for companies that are more mature and already close to profitability. It is difficult for pre-seed or seed-stage businesses to qualify for credit financing.
Venture capital firms moving into private credit
Question: Why are more venture capital firms starting private credit funds? Is private credit becoming more attractive because of its steady returns? What does this mean for early-stage founders who rely on venture capital?
Qin En Looi (Venture Capital)
There is definitely a trend of venture firms moving into private credit. Part of this is because the environment for founders has changed. Data shows that in the past 1 to 2 years, the number of new startups in Southeast Asia has fallen sharply. Being a founder here is harder than it used to be, and raising capital, whether credit or equity, is more challenging.
For venture funds, the pressure is clear. We cannot charge investors a 2% annual fee and only make one investment in a year. Limited partners will ask why their money is sitting idle when they could earn 3% risk-free in a Treasury bill. That is why fund managers are exploring more creative ways to deploy capital, including into private credit. In some cases, firms are even moving into venture building themselves when founders are not coming forward.
Complementarity between private credit and venture capital
Question: Where does private credit complement venture capital today, particularly in capital-intensive sectors where equity alone might not be enough? Could hybrid capital stacks, mixing venture equity with credit, become more common?
David Z. Wang (Private Credit)
This is not private credit versus venture capital. We often work alongside venture and private equity sponsors. Where there is strong equity support, credit can be a natural complement. Increasingly, we encourage founders and investors to consider adding some debt into the capital structure, either to reduce dilution or to fund specific projects. Hybrid approaches are certainly a growing trend.
Breaking into the industry
Question: With a background in accounting, credit analysis, and a Master’s in Finance, what pathways or skills should I focus on to break into private credit or venture capital?
Qin En Looi (Venture Capital)
Venture capital is a small, closed ecosystem where networks matter enormously. Technical skills can be learned on the job, but what really sets candidates apart is the ability to build trust and access the best opportunities early.
Venture capital has four essential tasks: finding companies, evaluating them, winning allocation, and eventually exiting. None of that is possible without the first step. If you cannot meet founders early, you cannot evaluate, you cannot invest, and you cannot exit. This is why networking is primary, while technical analysis, although important, is secondary.
Who invests in private credit and venture capital?
Question: Do private credit and venture funds mostly raise from corporates or ultra-high-net-worth individuals (UHNWIs)? What wealth levels are needed to participate?
David Z. Wang (Private Credit)
In our early days, high-net-worth individuals were a larger part of the investor base. Today, corporates are more dominant. For Ultra-High-Net-Worth Individuals (UHNWIs), participation typically starts at around USD 5 million and above. In Singapore, an individual with USD 1 million in investable assets qualifies as a high-net-worth investor, and platforms like Helicap can onboard them directly. Increasingly, both private credit and venture are accessible to individuals, which is a positive development.
How private credit funds differ
Question: How does one private credit fund differ from another? What should individual investors look out for?
David Z. Wang (Private Credit)
Funds differ in tenor, lock-up periods, strategy, expected returns, and fees. Investors should carefully review these factors when comparing funds. The fundamentals may be similar, but the structure and focus can make a big difference.
From a fundraising perspective, which is harder to secure, venture or private credit?
Question: How does one private credit fund differ from another? What should individual investors look out for?
Qin En Looi (Venture Capital)
For early-stage businesses with no revenue or cash flow, private credit is not an option. At that point, venture capital is the only route. Once a company generates cash flow and revenue, both avenues open up. The choice depends on the business model and capital needs.
Venture debt and equity kickers
Question: How deep is the market for venture debt in Southeast Asia? Could it sustain a USD 100 million AUM fund at 12–15% returns? And why do private credit funds not take warrants as an equity kicker?
David Z. Wang (Private Credit)
A USD 100 million AUM venture debt fund is certainly sustainable in this region. At the billion-dollar level, the answer is less clear. As for warrants, the difference comes down to the model. Venture debt funds often rely on warrants, with roughly 50% of returns coming from coupons and 50% from equity. Private credit, by contrast, is focused on cash-flow businesses. Equity kickers complicate net asset value calculations, so private credit funds generally avoid them. That said, hybrid models are starting to emerge, and it remains to be seen how effective they will be.
DPI in Southeast Asia vs USA
Question: How does Distributed to Paid-In capital (DPI) in Southeast Asia compare to that with the US, and does this affect career trajectories in venture capital here?
Qin En Looi (Venture Capital)
The US has far stronger DPI because its capital markets are more mature and provide more frequent exit opportunities. Southeast Asia still faces structural challenges, which naturally affects industry growth. This does have an impact on career progression, because the growth of the profession is tied to the space itself. When the industry does well, more funds are created and careers advance. We are currently at a low point, but cycles always turn. I am optimistic that future cycles will be bigger and stronger than before.
Comparing returns: private credit vs venture capital
Question:Private credit funds such as Helicap target net returns of 9–12% per year, approximately doubling after 10 years. What is the average industry expectation for venture capital returns in Southeast Asia over the same period, net of fees?
Qin En Looi (Venture Capital)
The textbook expectation for venture capital is a net IRR of 20–25%. This target is driven by the power law. Just as the rule applies to startups, it also applies to funds. The very top 1% of funds can generate 30–40% IRR, often delivering 5x or more. But access to those funds is limited, and they can be selective about their investors.
The reality is that outside the top 10%, many venture funds underperform. In fact, the bottom 50% often return less than the S&P 500, meaning investors would have been better off in a liquid ETF. The challenge for investors is not just targeting venture, but gaining access to the best-performing funds.
Pivoting from venture capital to private credit
Question: With a background in venture and early-stage investing, what should I focus on to pivot into private credit?
David Z. Wang (Private Credit)
The two industries are quite different. Venture is broad, fast-moving, and often thematic. Private credit is deeper and more granular, requiring constant monitoring of a smaller set of companies. To pivot successfully, sharpen your financial analysis skills, focus on cash flow modelling, and build the discipline of ongoing monitoring. It is not glamorous, but it is rewarding for those who value rigour and structure.
Greatest Of All Time (GOAT)
Question: Who do you each consider the greatest of all time in your asset class?
Qin En Looi (Venture Capital):
For me, it is Donald T. Valentine of Sequoia. He built not just superior-performing funds but an enduring institution. Many firms fade when their founding partners retire, but Sequoia has successfully transitioned through four generations of leadership. He showed that venture capital can be about more than returns, it can be about building a brand and heritage that uplifts founders.
David Z. Wang (Private Credit)
In private credit, I would point to Oaktree. One of their founders famously travelled to secure collateral on a ship after the owner tried to shift ownership. He stayed on-site until the issue was resolved. For me, that story captures the essence of private credit: collections and protecting investors. At Helicap, our priority is the same, showing the determination to secure the best outcomes for our clients.
Closing Reflections
The session did not crown a winner. Instead, it offered a more complete picture of how capital works in practice. Venture capital fuels ambition and innovation, financing the world as it could be. Private credit provides structure and stability, financing the world as it is today.
For investors, the decision is not binary. It is about alignment, matching strategies to individual risk appetite, liquidity needs, and long-term goals.
As David reminded the audience, “Private credit is about protecting your principal while still generating returns.” And as Qin En concluded, “Venture capital is about seeing the world not as it is, but as it could be.”
Together, their conversation revealed how two distinct forms of capital, when understood in harmony, shape growth, resilience and the future of finance in Asia. It is a reminder that enduring wealth is not about choosing sides, but about weaving stability and vision into legacies that stand the test of time.
Beyond the Balance Sheet: A Dialogue with Patti Chu
Patti Chu, Co-founder and Managing Director of Mana Impact, has built a global career bridging finance and sustainability, guided by a mission to align capital with purpose and restore balance between people and planet. Her journey shows that true impact begins with empathy and that even small acts of giving can create lasting change.
Beyond the Balance Sheet: A Dialogue with Kosuke Mori
In this special edition of Beyond the Balance Sheet, we shine the spotlight on Kosuke Mori, CEO of Saison International and Board Director at Credit Saison. As the architect of Credit Saison’s global strategy, Kosuke has steered the company’s expansion into dynamic emerging markets such as India, Indonesia, Brazil, and Mexico. He has built partnerships that bring inclusive lending and investment opportunities to millions all around the world.
Helicap Exchange | Cracking the Code to Private Credit
In a time of market uncertainty and tighter liquidity, private credit is gaining traction among investors and students alike. To unpack this fast-growing asset class, David Z Wang, CEO of Helicap Securities, hosted his first public webinar — Cracking the Code to Private Credit.
