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French Asset Manager Targets Asia's Private Credit Potential

Editorial Staff 29 February 2024

French Asset Manager Targets Asia's Private Credit Potential

The European investment house is partnering with a Singapore-based business to launch a private credit strategy. It says the asset class is underdeveloped in APAC, and has considerable upside potential.

Paris-listed Tikehau Capital, which oversees alternative assets and has about €17 billion ($18.4 billion) in private debt strategies, has joined with Singapore-based brokerage UOB-Kay Hian, to launch a new private credit strategy.

The partnership is another example of firms co-operating to tap into various investment opportunities in Southeast Asia. Earlier this week, for example,  Lombard Odier announced that it was teaming up with Thailand-based Kasikorn Asset Management to develop sustainable investment offerings and solutions. 

Under the Tikehau/UOB-Kay Hian pact, both organisations will contribute $50 million each in capital commitments to the strategy.

The new strategy will focus on mid-sized corporates in Asia-Pacific, with a particular emphasis on growth, working capital and refinancing lending.

Tikehau cited figures from the International Monetary Fund and Preqin Pro (2023) showing that Asia has more potential to hike allocation to private credit.

Compared with Asia’s 36 per cent contribution to global gross domestic product, Asia comprises only 7 per cent of global private credit assets under management.

"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,” Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, said. 

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