Tikehau Capital launches Asia private debt fund

French alternative asset manager Tikehau Capital has partnered with Singapore-based brokerage firm UOB-Kay Hian (UOBKH) to launch its debut private credit fund in Asia.

Both firms will invest $50m (£39.5m) into the strategy, which will provide financing to mid-sized corporates across the Asia-Pacific region.

The focus will be on growth, working capital, and refinancing lending to borrowers in resilient and defensive industries.

Tikehau Capital’s private debt business manages around €17bn (£14.5bn) of assets.

The firm said that this strategic collaboration, utilising UOBKH’s “deep local networks”, will help it to expand its global footprint, deepening its presence in Asia 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,” said Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital.

“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.”

Read more: Investment giants strengthen presence in Korea

Tikehau Capital cited data from the International Monetary Fund and Preqin which showed that Asia’s private credit market has significant scope to grow.

While Asia contributes 36 per cent to global GDP, the continent comprises only seven per cent of global private credit assets under management.

“We are delighted to partner with Tikehau Capital, a global alternative asset manager whose growth and success have been remarkable,” said Wee Ee Chao, chairman and managing director of UOBKH.

“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.”

Global investment firms are increasingly tapping into the opportunities that Asia’s private credit market presents.

Earlier this week, it emerged that Goldman Sachs has signed a $1bn partnership with Abu Dhabi’s sovereign wealth fund Mubadala Investment Company to invest in the asset class across the Asia Pacific region.

And UBS has appointed Ben Sung as head of its corporate book for Southeast Asia, as it plans to grow its presence in the Asian private credit market.