Alternative asset management group Tikehau Capital has partnered with UOB Kay Hian (UOBKH) to launch a new private credit strategy to tap Asia’s fast-growing private credit market.
The new strategy seeks to provide financing to mid-sized corporations across Asia Pacific. The focus will be on growth, working capital and refinancing lending to borrowers in resilient and defensive industries.
Both sponsors will be contributing US$50 million ($67 million) each in capital commitments to the strategy.
This strategic collaboration is in line with Tikehau Capital’s strategy to continue expanding its global footprint particularly across Asia, deepening its presence in a region where it has 10 years of operating history.
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, say Tikehau Capital cofounders Antoine Flamarion and Mathieu Chabran.
“Our partnership with UOBKH will give Asian mid-market businesses access to alternative funding sources, whilst simultaneously offering investors a unique opportunity to engage with private credit as an investment class,” they add.
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Meanwhile, UOBKH chairman and managing director Wee Ee Chao says: “We truly appreciate this partnership and commitment as we embark on this journey together in leveraging the strength of our franchises to grow the Asia Pacific Private Credit Fund Strategy".
As at Dec 31, 2023, Tikehau Capital has EUR43.2 billion in assets under management.
