French various asset supervisor Tikehau Capital has partnered with Singapore-based brokerage agency UOB-Kay Hian (UOBKH) to launch its debut personal credit score fund in Asia.
Each corporations will make investments $50m (£39.5m) into the technique, which is able to present financing to mid-sized corporates throughout the Asia-Pacific area.
The main focus will probably be on development, working capital, and refinancing lending to debtors in resilient and defensive industries.
Tikehau Capital’s personal debt enterprise manages round €17bn (£14.5bn) of property.
The agency stated that this strategic collaboration, utilising UOBKH’s “deep native networks”, will assist it to develop its world footprint, deepening its presence in Asia the place it has 10 years of working historical past.
“As Asian markets reveal continued strong development and constructive structural shifts, there’s an ongoing demand amongst mid-market companies within the area for funding to reinforce working capital and refinance present money owed,” stated Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital.
“Our partnership with UOBKH will give Asian mid-market companies entry to various funding sources, while concurrently providing traders a singular alternative to interact with personal credit score as an funding class.”
Learn extra: Funding giants strengthen presence in Korea
Tikehau Capital cited knowledge from the Worldwide Financial Fund and Preqin which confirmed that Asia’s personal credit score market has important scope to develop.
Whereas Asia contributes 36 per cent to world GDP, the continent contains solely seven per cent of world personal credit score property beneath administration.
“We’re delighted to companion with Tikehau Capital, a worldwide various asset supervisor whose development and success have been exceptional,” stated Wee Ee Chao, chairman and managing director of UOBKH.
“We actually respect this partnership and dedication as we embark on this journey collectively in leveraging the power of our franchises to develop the Asia Pacific Non-public Credit score Fund Technique.”
World funding corporations are more and more tapping into the alternatives that Asia’s personal credit score market presents.
Earlier this week, it emerged that Goldman Sachs has signed a $1bn partnership with Abu Dhabi’s sovereign wealth fund Mubadala Funding Firm to spend money on the asset class throughout the Asia Pacific area.
And UBS has appointed Ben Sung as head of its company e book for Southeast Asia, because it plans to develop its presence within the Asian personal credit score market.
