Australian asset manager IFM Investors is planning a major expansion into Asian private credit markets, with the firm targeting the deployment of up to half of a roughly $1bn open-ended fund across the region, according to a report by Bloomberg.
The fund is currently weighted heavily towards Australia and New Zealand, but IFM intends to allocate around 25% to 35% to other Asian markets in the near term, primarily in Southeast and South Asia. The report cites Hiran Wanigasekera, co-head of APAC diversified credit at IFM, as saying that over time, the firm expects Asia to account for approximately half of the portfolio.
The strategy reflects the firm’s view that Asian private credit remains a multi-decade growth opportunity, with relatively attractive deal structures and lending conditions compared with more mature markets.
IFM also sees potential advantages in the region’s lending practices, which it considers generally more conservative than those found in some other markets. Asian private credit transactions are frequently secured against tangible assets such as manufacturing facilities, while underwriting standards tend to be stringent, particularly in emerging markets where legal protections for lenders can be less developed.
IFM, which manages approximately $205bn in assets globally, opened an office in Singapore earlier this year and has already completed three investments in the region. These include deals spanning digital infrastructure, agricultural commodities and business services.
