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Tikehau Capital partners with UOB-Kay Hian to launch first private credit fund in Asia

Tikehau Capital, a €43.2bn ($46bn) French alternative asset management group with a €17bn private debt strategy, will launch its first private credit fund in Asia in partnership with Singapore-based brokerage firm UOB-Kay Hian. 

Tikehau and UOB-Kay Hian will each invest $50m to go towards financing mid-sized corporates with a focus on growth, working capital, and refinancing lending to borrowers in “resilient and defensive industries”, according to a press statement.

Speaking on Bloomberg Television, Antoine Flamarion, Co-Founder of Tikehau, said: “There is no secret sauce, but you need boots on the ground.

“Throwing money and lending money to companies is very easy, but what you need to do is deliver good returns for your investors.

“The market is becoming very big — giant in the US, big market in Europe and it’s just starting in Asia.”

According to data from the International Monetary Fund and Preqin Pro (2023), Asia’s allocation to private credit remains under-represented. Compared to a 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.

Tikehau invests across four asset classes (private debt, real assets, private equity and capital markets) as well as through multi-asset and special opportunities strategies, last month appointed Colin Lim, a former Managing Director at Hong Kong-based investment firm BPEA, to lead its private debt business in Asia.

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