SeaTown Holdings – the wholly-owned subsidiary of Temasek’s asset management group – has closed its latest private credit fund with more than $1.3bn (£0.98bn) in capital commitments.

The SeaTown Private Credit Fund II was backed by a mix of existing and new limited partners, including insurance companies, endowments, and family offices. The fund also secured a commitment from an unnamed Middle Eastern institutional investor.

The Singapore-based fund launched at the end of 2022 and focuses on lending to businesses across Asia Pacific.

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Following the close of the SeaTown Private Credit Fund II, SeaTown’s private credit strategy now oversees more than $2.5bn in assets under management.

“This milestone highlights not only the growing appetite for Asian private credit in institutional portfolios around the world but also reflects the confidence and trust in SeaTown’s approach,” said Patrick Pang, chief executive of SeaTown.

“Our private credit team has demonstrated a clear ability to repeatedly source, structure, and execute complex and bespoke deals across industries.

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“We are excited to continue executing on our proven investment strategy to deliver attractive risk-adjusted returns to our investors.”

The fund will deploy capital on a sector agnostic basis and target a mid-teens net return and double-digit distribution yield for investors over its fund life.

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