Investment firm Muzinich & Co has announced the first close of its Asia Pacific (Apac)-focused private debt fund at $500 million.
Institutional investors contributed 80% of the money, with the remainder from family offices, according to Bloomberg reports, quoting Andrew Tan, the US firm’s regional chief executive officer, who also leads the private credit business.
Half of the funds come from investors in Asia. Singapore’s DBS Group Holdings is the anchor investor with $200 million, Tan added.
Called the Asia Pacific Private Debt I Fund, it serves to provide flexible financing solutions to underserved core and lower middle-market companies in Apac, the company announced on 3 July.
It added that the fund has built a diversified portfolio across geographies and industries and has been classified as an Article 8 financial product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
For reference, an Article 8 fund under SFDR is one which promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided the companies in which the investments are made follow good governance practices.
The fund follows the firm’s investment principle of targeting lower middle market companies with earnings before interest, taxes, depreciation and amortisation of $3 million to $30 million. In Asia, however, it has a slightly broader range.
With team members located in Singapore, Hong Kong and Australia, Muzinich believes it is well placed to tap into local networks to capitalise on opportunities across the region.
Since its launch in 2021, the Muzinich Asia Pacific Private Debt I fund has lent around 35% to 40% of its money to eight entities, located in Australia, India and Hong Kong, Tan told Bloomberg, without naming the companies.