Barings launches first Australian private credit fund
Barings has launched its first Australian private credit fund, with more than $230m (£117m) committed to date.
The Barings Australian Private Credit Fund has been funded by an unnamed global investor. It will focus on directly originated loans to private middle-market companies in Australia and New Zealand, with an emphasis on the education and healthcare sectors.
The fund will be open to both institutional and wholesale investors.
Read more: Barings to launch European private credit CLO
“We continue to identify numerous opportunities in the Australian private credit market as a result of our market position and the opportunities that derive from our current portfolio, despite the fact that there has been a decrease in M&A activity,” said Barings’ Asia Pacific private finance group managing director Justin Hooley.
“As one of the most active lenders in the region with over 13 years of track record and a diversified portfolio, we are well-positioned to capitalise on the compelling opportunity.”
Barings has also announced the first close of the Barings Developed Asia Pacific Private Loan Fund 1A, with more than $460m raised.
Read more: Barings’ European private credit unit has deployed €1.5bn this year
“The Asia Pacific private credit market is rapidly evolving into an appealing opportunity for investors,” said Shane Forster, APAC head of investment management and managing director in Barings’ Asia Pacific private finance group.
“It exhibits comparable attributes to private credit in North America and Europe, including exposure to high-quality borrowers, but with less competition for lending opportunities, geographical diversification and exposure to expanding developed economies such as Australia, New Zealand, Hong Kong and Singapore.”
The firm added that it sees “tremendous opportunity” for private credit growth in the developed APAC region, as these economies share similar risk and return profiles, with regulations that are comparable to other developed nations.
Read more: Barings highlights new private credit deal
