Tikehau Capital and UOB Kay Hian type $100m Asia personal credit score fund

Tikehau Capital, a worldwide various asset administration group with round €17 billion ($18.6 billion) beneath administration, has joined forces with Singapore-headquartered brokerage agency UOB Kay Hian (UOBKH), to launch a brand new personal credit score technique.

Each Tikehau Capital and UOBKH might be contributing $50 million every in capital commitments to the technique which seeks to offer financing to mid-sized corporates throughout Asia Pacific (Apac). The main focus might be on progress, working capital, and refinancing lending to debtors in resilient and defensive industries.

Tikehau Capital’s world institutional relationships within the personal credit score house will mix with UOBKH’s native networks.

This strategic collaboration is in keeping with Tikehau Capital’s technique to proceed to increase its world footprint, notably throughout Asia, the place IT has been working for a decade.

Based on 2023 knowledge from the Worldwide Financial Fund and Preqin Professional, Asia’s allocation to non-public credit score stays under-represented. In comparison with Asia’s 36% contribution to world GDP, Asia includes solely 7% of world personal credit score belongings beneath administration, representing important scope for progress of the personal credit score market in Asia.

Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, stated in a media launch: “As Asian markets show continued strong progress and optimistic structural shifts, there may be an ongoing demand amongst mid-market companies within the area for funding to boost working capital and refinance present money owed. Our partnership with UOBKH will give Asian mid-market companies entry to various funding sources, while concurrently providing buyers a novel alternative to interact with personal credit score as an funding class”.

In the identical assertion, Wee Ee Chao, chairman and managing director of UOBKH, commented: “We actually respect this partnership [with Tikehau Capital] 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.”

Regulation agency Dechert helped advise on the deal, and Thomas Kim, companion, Singapore at Dechert, stated in a separate assertion, “A quickly increasing asset class in Apac, personal credit score presents important progress alternatives for buyers and companies alike.”

Kim added: “The launch of this fund attests to the thrilling curiosity and progress we’re seeing on this asset class in th Apac area specifically.”

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