Hong Kong-based private lender Flow Capital Partners (FCP) has launched a $125m Asia-focused credit fund, marking a strategic expansion beyond its initial China and Hong Kong remit, according to a report by Bloomberg citing unnamed sources familiar with the matter.
The Asia Credit Master Fund represents a structural shift for the firm, which will now manage all new deals under the fund instead of via deal-specific special purpose vehicles. The fund is targeting fresh capital with ambitions to grow assets under management to $300m by 2026.
FCP, known for providing private credit to Chinese property developers, is now broadening its sector focus to include areas such as renewable energy, in line with shifting regional credit demand. In a notable 2023 transaction, the firm lent HKD900m ($115m) to a unit of Country Garden Holdings, backed by parent guarantees and Hong Kong real estate.
The move reflects growing momentum in Asia’s $1.7tn global private credit market, where rapid expansion in the region is outpacing other geographies. FCP joins other regional players like SC Lowy and Tor Investment Management in scaling up Asia-focused credit vehicles.
Jacky Tian, formerly of Oaktree Capital Management, will serve as portfolio manager for the new fund after joining FCP in June. Meanwhile, former shareholder Adrian Cheng, ex-CEO of New World Development, has exited the firm, a representative confirmed.
Flow Capital Partners declined to comment on the fund launch.
