The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

CMBI
CMBI, a wholly owned subsidiary of China Merchants Bank (CMB), a commercial bank listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, and global alternative asset manager MA Financial Group, listed on the Australian Stock Exchange, have signed a general partners agreement to jointly manage the MA CMBI APAC Credit Opportunities Fund.

The fund, structured as a Cayman limited partnership, will provide institutional and ultra-high net worth investors worldwide with access to Asia Pacific’s private credit market; It will focus on senior secured leveraged loans.

CMBI APAC Credit Opportunities Fund GP and MA Investment Management Pty Ltd will be the co-general partners of the fund, which will be managed by CMBI’s asset management entity in Hong Kong and MA Financial’s asset management team in Sydney and Singapore. The collaboration will harness CMBI’s regional network and execution strength alongside MA Financial’s private credit expertise, the firms said in a statement.

The fund is targeting a size of $600 million of investments (including equity commitments of approximately $250 million) and an internal rate of return of between 9 and 11 per cent (before fees). The fund will be launched at advanced stages with “attractive” seed investments secured, and a deep visible pipeline has been identified; NAV financing is being arranged from a major global commercial bank and the first LP commitments are secured.

“We are very proud to partner with MA Financial to launch this dedicated Asia-Pacific LBO credit opportunities fund,” Jianjun Huo, CMBI’s chief executive officer, said. “As the Asia-Pacific region continues to drive global economic growth, its private credit market stands out as one of the world’s fastest-growing and most dynamic segments, fueled by structural demand for flexible, non-bank financing.”

“This initiative builds on MA Financial’s long term commitment to Asia and is a strong endorsement of and testament to MA Financial’s proven track record and significant expertise and capabilities in private credit investing,” Andrew Martin, MA Financial’s head of asset management said. “A large share of future global economic growth is expected to come from Asia and with that we see multiple demand drivers for private credit, from accelerating GDP growth, rising consumption from an expanding middle class, maturing private equity markets and a widening financing gap for sponsors and companies.”