Tikehau Capital and UOB Kay Hian form Asia private credit fund

Mar 15, 2024 | News

Tikehau Capital (Paris:TKO), the global alternative asset management group with c. €17 billion dedicated to Private Debt strategies, has joined forces with Singapore-based brokerage firm UOB-Kay Hian (“UOBKH”), the largest stockbroker in Southeast Asia with over 100 years of operating history in Asia, to launch a new private credit strategy.

Both sponsors will be contributing US$50 million each in capital commitments to the strategy, demonstrating strong alignment of interest with investor clients.

This new private credit strategy seeks to provide financing to mid-sized corporates across Asia Pacific. The focus will be on growth, working capital, and refinancing lending to borrowers in resilient and defensive industries.

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Tikehau Capital’s strong global institutional relationships and extensive track record in the private credit space, combined with UOBKH’s deep local networks, allow the new private credit strategy to tap on a unique nexus of sourcing and diligence channels. This strategic collaboration is in line with Tikehau Capital’s strategy to continue to expand its global footprint, particularly across Asia, deepening its presence in a region where it has 10 years of operating history.

According to data from the International Monetary Fund and Preqin Pro (2023), Asia’s allocation to private credit remains under-represented. Compared to Asia’s 36% contribution to global GDP, Asia comprises only 7% of global private credit assets under management, representing significant scope for growth of the private credit market in Asia.

source: YahooFInance

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