MA Financial, CMBI target USD600m for APAC private credit fund
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The news: MA Financial Group and CMB International will launch a managed Asia Pacific credit opportunities fund.
The numbers: The MA CMBI APAC Credit Opportunities Fund is targeting a size of USD600 million, including USD250 million of equity commitments, of investments and an internal rate of return of 9% to 11%. The fund will invest in senior secured leveraged loans and sponsor-backed corporate borrowers in the APAC region.
The context: CMBI is a wholly owned subsidiary of China Merchant Bank which is listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
CMBI and MA Financial will be co-general partners of the fund and will be managed by CMBI’s asset management entity in Hong Kong and MA Financial’s asset management team in Sydney and Singapore.
The fund will be structured as a Cayman limited partnership and will target institutional and ultra-high net worth investors.
What they said: MA Financial head of asset management Andrew Martin said: “A large share of future global economic growth is expected to come from Asia and with that we see multiple demand drivers for private credit, from accelerating GDP growth, rising consumption from an expanding middle class, maturing private equity markets and a widening financing gap for sponsors and companies.”
“For investors, Asia Pacific private credit presents a unique opportunity particularly as a diversifier for portfolios concentrated towards US and European private credit markets.”
The source: MA Financial media release
