French alternative asset manager Tikehau Capital is the latest firm to make a push into the Asian private credit market.
The firm has partnered with Singapore-based asset manager UOB-Kay Hian for the venture.
Both parties will be contributing US$50 million in capital, although the size of the fund remains unknown for now.
According to a statement, the strategy will provide financing to mid-sized corporates across the region.
More specifically, the strategy will focus on growth, working capital, and refinancing lending to borrowers in resilient and defensive industries.
Data shows that the private credit remains under-represented among Asian investors. According to data from the IMF and Preqin Pro, Asia contributes 36% to global GDP but just 7% of global private credit assets under management.
Earlier this week, Abu Dhabi-based sovereign wealth fund Mubadala struck a deal with Goldman Sachs Asset Management to pursue private credit deals across Asia.
“As Asian markets demonstrate continued robust growth and positive structural shifts, there is an ongoing demand among mid-market businesses in the region for funding to enhance working capital and refinance existing debts,” said Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital.
“Our partnership with UOBKH will give Asian mid-market businesses access to alternative funding sources, whilst simultaneously offering investors a unique opportunity to engage with private credit as an investment class.”
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