SYDNEY, Oct 16 (LPC) – Money managers are ramping up fundraising across a range of private debt strategies in Asia Pacific as market dislocation triggered by the coronavirus pandemic sets the scene for a boom.
Australia’s AMP Capital recently launched a mezzanine infrastructure debt strategy in Asia Pacific, while Hong Kong-based OCP Asia is raising US$500m for a direct lending fund to provide senior secured loans to family-owned business and small to medium-sized enterprises across the region.
These developments follow a US$200m raising in March for Singapore-based Pierfront Capital’s private credit fund that finances real estate and real assets across APAC, as well as a US$350m mandate from Canada’s Ontario Teachers’ Pension Plan that India’s Edelweiss Alternative Asset Advisers won in September to invest in performing and distressed credit opportunities.
The fundraising spree comes as investors are increasing their allocation to what is a relatively nascent market in Asia in search of diversification and stability away from public markets amid the global health crisis.
Institutional lenders have also been stepping up in areas where banks have scaled back, mirroring the shift in the US and Europe.
Fundraising for private debt in Asia Pacific includes direct lending, mezzanine financing, distressed and special situations with varying risk returns.
“We are at the beginning of the journey in terms of the opportunity