Singapore sovereign wealth fund GIC is betting that tighter bank lending policies will see companies look to private credit to provide the capital they need and is shifting money to the sector as a result, according to a report by Bloomberg.
Singapore sovereign wealth fund GIC is betting that tighter bank lending policies will see companies look to private credit to provide the capital they need and is shifting money to the sector as a result, according to a report by Bloomberg.
The report quotes GIC Chief Investment Officer, Jeffrey Jaensubhakij, as describing private credit to be an asset class that currently offers the “most attractive” risk-reward profile with rising interest rates pushing up returns.
“The opportunity set today is in private credit, and we have assets from which we can move to invest in that,” he said in an interview.
On Wednesday, GIC, which has an estimated $690bn in assets under management, according to the Sovereign Wealth Fund Institute, reported its worst annualised five-year returns since 2016.
