Investment platform Moomoo Singapore (Moomoo) has announced a strategic partnership with global investment firm, Barings, to provide accredited investors in Singapore access to “institutional-grade” private credit investments.
Barings is a subsidiary of Fortune 500 American life insurance company, MassMutual, with over US$442 billion ($568.5 billion) in assets under management (AUM) as of March.
With the collaboration, users of the Moomoo app can now find available private market investment opportunities, an asset class that has “historically been limited” to institutions and “ultra-high-net-worth” individuals.
This possibly entails access to private credit instruments such as senior secured loans and other private debt instruments across North America and Europe, which allows diversified exposure, “resilience income potential” and lower volatility compared to traditional public equities or high-yield bonds.
Private credit investments are structured to offer competitive income and lower sensitivity to public market volatility and often come with high capital thresholds and complex fee models.
The partnership will thus allow accredited investors in Singapore to tap into private credit with investor liquidity and at lower minimum investment thresholds, as compared to other traditional institutional private credit strategies.
See also: Temasek's SeaTown private credit fund hits US$612 mil in first close
According to capital markets data provider PitchBook, private credit funds delivered an average annual return of 8% to 10% over the past decade, making it an “attractive option” for income-focused investors.
Figures provided by the Monetary Authority of Singapore (MAS) and attributed to independent private markets data provider Preqin also forecast the global private credit AUM to reach US$2.8 trillion ($3.60 trillion) in 2028, about double that of 2022’s AUM of US$1.5 trillion.
Moomoo Private Wealth, head of private wealth and institutional business, Ryan Wu, says: “Private credit has become an increasingly compelling asset class for long-term investors seeking competitive yields and portfolio diversification."
“We are honoured to be Barings’ first digital investment platform partner to offer this opportunity to a broader investor base across the region,” adds Wu.
Barings’ head of distribution, Greater China and Southeast Asia, Lydia Wu, says: “Barings’ Global Private Finance team has been investing in private credit markets for over 30 years and has invested in over 1,000 platform companies across multiple credit and economic cycles. We are equipped with the knowledge and expertise to provide our clients with access to the opportunities in this untapped market segment.”
