US credit firm Muzinich & Co, in partnership with Asian alternative investment platform Orion3, has launched a private debt strategy focused on infrastructure and real assets to address the sector’s growing global funding shortfall, according to a report by Bloomberg.
The report cites Andrew Tan, Muzinich’s CEO for the Asia Pacific region, as confirming that the fund, which was officially launched on Monday, has secured an initial investment of $120m, and is targeting between $500m and $1bn and returns in the low teens on a blended basis.
Muzinich’s infrastructure strategy mirrors similar moves by major private equity firms. Last month, BlackRock raised $1.3bn for its Global Infrastructure Debt Fund II, and Brookfield Asset Management collected over $6bn for its infrastructure debt fund in late 2023.
The Muzinich fund will focus on investments in developed Asian and Western countries, including Australia, the UK, South Korea, and Japan. Target deal sizes will range from $15m to $75m, spanning from senior secured bridge financing to capital expansion, Tan said.
According to Harry Chang, co-founder and CFO of Orion3, undraising efforts are currently underway, with a focus on attracting institutional investors, family offices, and high-net-worth individuals across Asia, Europe, and North America.
