IFM Investors has expanded its private credit operations in Asia by establishing a new office in Singapore.

The global pension capital investor, which has A$291.6bn (£155.4bn) in assets under management, stated that the office will help IFM expand its private market capabilities across the continent, particularly in diversified credit.

The move comes as IFM looks to deploy up to half of its roughly $1bn (£741m) private credit fund in other Asian markets. The firm plans to allocate around 25 to 35 per cent to Asia in the near term before eventually increasing its overall allocation to roughly half the portfolio, Bloomberg reported this week.

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“We… believe Asia-Pacific private credit is at an inflection point, with the market growing nearly fourfold from a low base over the past 15 years,” said Hiran Wanigasekera, executive director and co-head of Asia‑Pacific diversified credit.

“It is this strong projected growth which makes it an increasingly compelling asset class that we believe can bring key structural benefits to global portfolios during this increasingly volatile time in markets.”

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The new office follows the Australian Government committing A$175m through Export Finance Australia to IFM’s Asia-Pacific private credit capabilities. The funding will support businesses with strong growth potential in Southeast Asia across industrials, manufacturing, services, renewable energy, telecommunications and real assets, the firm said.

IFM is owned by 15 Australian industry superannuation funds and one UK pension fund. Currently, Australia’s pension system manages A$4.5tn in funds and is projected to reach A$8.3tn in the 2030s.

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