IFS Capital Ltd, IFS Asset Management Private Ltd (IFSAM) and Funds IGC Pte Ltd, the Singapore subsidiary of Japan’s Funds, Inc., today announced that they have signed a non-binding memorandum of understanding (MoU) to channel Japanese capital into private credit strategies serving small- and medium-sized enterprises (SMEs) across Asia Pacific.
Under the MoU, Funds IGC will provide funding through direct or indirect collaboration with funds managed by IFSAM, which are focused on asset-backed financing secured by real estate and structured credit investments, and accessible to institutional and accredited investors. The funds are also used to provide financing to creditworthy SMEs that need access to capital for business growth, according to a statement by the firms.
In addition, the three parties will co-develop networks and pipelines to identify, structure, and execute private credit opportunities across Asia Pacific.
“This collaboration marks an important step forward in our efforts to connect Japanese capital with Southeast Asia’s SME growth story,” said Randy Sim, group CEO of IFS Capital, a Singapore-based financial services that provides financing across Asean including factoring, leasing, hire purchase, and loans.
Charis Liau, chief investment officer of IFSAM, added: Our goal is to build a scalable private credit platform that channels institutional capital into SMEs across Southeast Asia, deepening the region’s financial ecosystem.”
IFSAM is a Singapore-based fund management company licensed and regulated by the Monetary Authority of Singapore. Part of the PhillipCapital Group and subsidiary of IFS Capital Limited, IFSAM specialises in private credit investments with a focus on asset-backed lending to SMEs in Singapore.
Private credit has been gaining momentum as an asset class globally. High net worth individuals and institutional investors, including alternative asset managers and sovereign wealth funds, have been allocating more capital to private credit as they seek stable income, capital preservation and enhanced portfolio diversification
In particular, the partners top the agreement see a growing demand for private credit financing opportunities for SMEs in Asia Pacific. The SME sector represents 98% of all businesses in Asia but faces a $2.5trn, they said.
To capture growth opportunities in the region, Funds, Inc, a Japanese financial platform, has recently established Funds IGC in Singapore as its overseas hub to spearhead global expansion.
“By establishing Funds IGC in Singapore, we are creating a bridge for Japanese capital to participate directly in Asia Pacific’s growth, ” said Keisuke Yamakoshi, co-CEO, Funds IGC.
