Temasek-backed SeaTown Holdings has secured about $900m at the second close of its third private credit fund, reinforcing investor appetite for Asia-focused lending strategies despite a broader slowdown in global fundraising, according to reports. 

The vehicle, Private Credit Fund III, raised $612m at its first close in August. SeaTown said demand remains strong across the Middle East, Japan, Taiwan, and Singapore, and that the fund is progressing in line with internal expectations. It expects the final size to match its previous two funds, which closed at $1.2bn and $1.3bn.

The firm said institutional investors continue to anchor the strategy, while private wealth participation rose significantly at the second close.

Asia’s private credit market is expanding rapidly. It is projected to reach $92bn by 2027, up from $59bn last year, according to industry research. SeaTown’s fund targets mid-teens net returns and double-digit distribution yields through lending strategies that benefit from healthy spreads across key markets.

Founded in 2009, SeaTown is wholly owned by Temasek’s asset management arm, Seviora, and manages more than $4bn across private equity, private credit, and public markets.

The strong second close highlights the region’s growing role in global private credit allocation as institutional and private investors look for yield, stability, and differentiated exposure.

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