Tikehau Capital, a Paris-headquartered alternative asset management group with €43.2 billion of assets under management (as of December 31 2023), has joined forces with Singapore-based brokerage firm UOB-Kay Hian (UOBKH) to launch a new private credit strategy.

Both firms are contributing US$50 million each in capital commitments to the strategy, which seeks to provide financing to mid-sized corporates across Asia-Pacific. The focus will be on growth, working capital, and refinancing lending to borrowers in resilient and defensive industries.

Tikehau Capital’s strong global institutional relationships and extensive track record in the private credit space, combined with UOBKH’s deep local networks, will allow the new private credit strategy to tap on a unique nexus of sourcing and diligence channels, the firms say.

According to data from the International Monetary Fund and Preqin Pro (2023), Asia’s allocation to private credit remains under-represented. Compared to its 36% contribution to global GDP, Asia comprises only 7% of global private credit assets under management, representing significant scope for growth of the private credit market in the region.

“Our partnership with UOBKH will give Asian mid-market businesses access to alternative funding sources, while simultaneously offering investors a unique opportunity to engage with private credit as an investment class," say Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital.