SeaTown Holdings International, a unit of Singapore’s state-owned investor Temasek Holdings Pte., has raised over US$612 million ($787.7 million) in initial investor commitments for its third private credit fund, targeting deal opportunities across Asia.
New and returning investors in the Middle East, Japan, Taiwan and Singapore have committed to the fund’s first close, according to a statement. SeaTown Private Credit Fund III will focus on lending to companies across sectors in Asia Pacific, “targeting a net return in the mid-teens and a double-digit distribution yield to investors,” it said.
SeaTown’s fundraising reflects investor appetite for a regional market still seen as nascent and expanding, even as the broader private credit sector shows signs of slowing.
“Our strategy is centred on performing loans in Asian markets where we see an underserved need for flexible capital,” said Eddie Ong, the firm’s deputy chief investment officer and head of private investments.
Globally, private credit fundraising is on track for its weakest year since at least 2018, with just US$70 billion raised through July 22, according to JPMorgan Chase & Co. data.
SeaTown last year raised US$1.3 billion for its second private credit fund PCF II. Its first fund secured US$1.2 billion.
Recipients of its loans in Asia include Vincom Retail JSC and Vinfast Auto Ltd., which are units Vietnamese conglomerate Vingroup JSC.
The firm is aiming to wrap up fundraising for the third fund in the second half of next year.
