A new collaboration in line with Tikehau Capital’s strategy to continue to expand its global footprint, particularly across Asia, is deepening its presence in a region where it has ten years of operating history.

Tikehau Capital, a global alternative asset management group based in France has joined forces with Singapore-based brokerage firm UOB-Kay Hian, the largest stockbroker in Southeast Asia, to launch a new private credit strategy, both firms announced Wednesday.

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

Financing Mid-sized Corporates Across Asia Pacific

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.

«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. 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,» Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital said.

Private Credit Under-represented

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 percent contribution to global GDP, Asia comprises only 7 percent of global private credit assets under management, representing significant scope for growth of the private credit market in Asia.

Tikehau Capital’s global institutional relationships and track record in the private credit space, combined with UOBKH’s deep local networks, allow the new private credit strategy to tap into a unique nexus of sourcing and diligence channels, both firms said.