RRJ Capital has secured $1.1bn at the first close of its debut private credit fund, as global managers push deeper into Asia’s underpenetrated private debt market, according to sources cited by Bloomberg.

The RRJ Structured Hybrid Opportunity Fund targets a net internal rate of return of about 16% and has drawn commitments primarily from sovereign wealth funds in Asia and North America, according to people familiar with the matter.

Founded in 2011 by former Goldman Sachs banker Richard Ong, RRJ plans to deploy capital across Southeast Asia, Australia, Hong Kong, and India, completing about six deals per year. The firm is headquartered in Singapore and employs around 20 professionals.

Asia’s private credit market remains a fraction of the $1.7tn global industry but is expected to expand to $92bn by 2027 from $59bn in 2024. However, borrowers in the region often favour cheaper bank loans, which also provide ancillary services such as cash management and revolving credit facilities.

The fund launch highlights both the growth opportunity and structural challenges facing private credit investors seeking to scale in Asia.

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