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Keppel’s Pierfront Capital gearing up for new fund
Real assets offer more downside protection in private credit: Pierfront Capital
Singapore-based Pierfront Capital closes $700m second credit fund
Keppel-Backed Pierfront Capital Achieves $700m Final Closing for 2nd Private Credit Fund
Pierfront Capital private credit fund raises US$700 million
Keppel-Pierfront APAC real asset private credit fund closes at $700m
Pierfront Capital announces final close of private credit fund
Pierfront Capital announces second close of private credit fund with almost US$500 million of additional commitments from global institutional investors
Pierfront Capital announces commitment of US$150 million by the Asian Infrastructure Investment Bank in the Keppel-Pierfront Private Credit Fund
Pierfront raises US$200m for APAC private credit fund
APAC Real Estate
Pierfront raises US$200m for APAC private credit fund
Singapore-based fund manager Pierfront Capital has raised US$200m in the first close of a new private credit fund, which will provide financing to real estate and other real asset sectors across Asia Pacific.
The fund is jointly sponsored by a Pierfront’s first fund, Pierfront Capital Mezzanine Fund (PCMF), and Singaporean asset manager Keppel Capital, which recently completed the acquisition of a 50% interest in Pierfront.
The fund launch comes after Pierfront received its capital markets services license from Singapore’s financial regulator.
“Private debt is a growing asset class, particularly in today’s environment in Asia-Pacific, where we have observed considerable demand for alternative lending solutions to meet capital needs of corporates and projects in real asset sectors, arising from the structural tightening of traditional bank lending in select markets,” said Keppel Capital CEO Christina Tan.
“We believe that this increasing demand for alternative lending solutions, coupled with the Keppel Group’s capabilities and PCMF’s track record in credit investments, positions the Fund well to capture opportunities in Asian private debt markets.”
Keppel Capital and PCMF have each committed US$100m to the first close.
The new fund will provide loans to corporates or projects predominantly in real asset sectors such as real estate, infrastructure, offshore marine, transportation, energy and natural resources.
Pierfront said its first fund, PCMF, had committed almost US$400m across 15 investments since 2016, achieving over mid-teens gross internal rate of return.
Singaporean sovereign wealth fund Temasek owns a 90.91% stake in PCMF, and Sumitomo Mitsui Banking Corporation owns the remaining interest.
“The ability to leverage Keppel’s capabilities and networks to gain access to a wider pool of deal opportunities and enhanced market intelligence, especially in times of uncertainty, puts us in good stead to continue executing private credit investments that provide attractive risk-adjusted returns to our investors,” said Pierfront Capital CEO and CIO Stephane Delatte.
Keppel Capital has S$33bn in assets under management, and is the asset management arm of Keppel Corp.
Big funds raise money as opportunities surface
Finews.Asia
Big funds raise money as opportunities surface
Blue-chip hedge funds, which have been closed to raising new money for years, are now raising funds to take advantage of the market volatility. In Asia, private debt funds are gaining traction amid adjusted valuations and opportunities.
DE Shaw is raising $2 billion in the first fundraising for its flagship vehicle in seven years. The move mirrors those of peers Baupost Group and TCI Fund Management in order to capitalize on opportunities thrown up by market turmoil.
«We’re hearing from a lot of managers that they’re setting up new vehicles to take advantage of the dislocation,» said Patrick Ghali, co-founder of Sussex Partners, who was quoted in «Financial Times».
Fundraising cap lifted
With the market rout, the New York-based quantitative group started approaching investors about raising $1 billion for its $13 billion Composite fund, which has been closed to new investments since 2013.
When it reopens on 1 April, the fundraising cap has been increased to $2 billion because of investor demand and opportunities thrown up by moves in the market, the paper reported, quoting a person familiar with the situation. DE Shaw declined to comment.
Another big name, TCI, is also looking to reopen even though it suffered large falls in performance this year. The London-based fund, which invests in a concentrated portfolio of stocks, has been approached by investors wanting to increase their allocations.
Fundraising activities in Asia
In Asia, private debt funds have grown as an asset class and continue to see interest. Singapore-based fund manager Pierfront Capital Fund Management on Monday announced the first close of its latest real asset private credit fund at $200 million.
The fund, Keppel-Pierfront Private Credit Fund, secured $100 million each from its two sponsors, Pierfront Capital Mezzanine Fund (PCMF) and Keppel Capital Holdings. PCMF is owned by Temasek Holdings (90.91 percent stake) and Japan’s Sumitomo Mitsui Banking Corporation (9.09 percent).
Keppel pushes debt fund to $200m first close after buying half of SG lender
Mingtiandi
Keppel pushes debt fund to $200m first close after buying half of SG lender
James Hatten
Pierfront invested $50 mil in a loan facility for data centre developer ChinaData Group in December
Just one day after completing its acquisition of a half-stake in a Temasek-backed alternative lender, Keppel Capital has committed $100 million to the real asset-focused fund manager’s latest debt vehicle.
The fund management division of Singapore’s Keppel Corp contributed half of the cash that enabled Pierfront Capital to reach a $200 million first close on its second Asia Pacific-focused credit fund, according to an announcement today by the Singapore non-bank lender.
That commitment to Keppel-Pierfront Private Credit Fund has been matched by a further $100 million from Pierfront’s first credit vehicle – Pierfront Capital Mezzanine Fund – which is held jointly by Singapore wealth fund Temasek and Japan’s Sumitomo Mitsui Banking Corporation, according to the non-bank lender.
Pierfront confirmed to Mingtiandi that its latest private credit vehicle, which is currently targeting a number of seed assets, is aiming for a final close of $600 million, with a hard cap of $750 million.
The fund aims to lend to real asset initiatives across Asia Pacific including infrastructure, real estate, energy, and offshore marine where “financing needs are not met by traditional commercial banks”.
Tapping into Increasing Demand for Debt
“Private debt is a growing asset class, particularly in today’s environment in Asia Pacific, where we have observed considerable demand for alternative lending solutions to meet capital needs of corporates and projects in real asset sectors, arising from the structural tightening of traditional bank lending in select markets,” said Keppel Capital’s CEO Christina Tan.
Tan added that Keppel Capital, which has $33 billion in assets under management across a portfolio that includes real estate, data centres, and infrastructure, will add value to Pierfront Capital’s deal-sourcing networks.
Pierfront’s CEO and CIO Stephane Delatte said that the “long-term strategic partnership” with Keppel would give the firm a “positive bearing on our real asset investment focus given its extensive networks and in-depth operating experience in our sectors of focus”.
Tying Up with an Institutionally Backed Lender
In a separate announcement, Keppel Capital said yesterday that it had completed its acquisition of a half-stake in Pierfront for $7.8 million.
Keppel has tied up with the non-bank lender after it made over $400 million in investments globally across private credit, mezzanine and structured financing over the past five years.
With Temasek holding a 91 percent stake and Sumitomo Mitsui the remainder in the company’s Pierfront Capital Mezzanine Fund, Pierfront is already leveraging institutional capital and networks across Asia Pacific.
Just three months ago, the fund invested $50 million in a term loan facility to pan-Asian data centre owner and operator ChinData Group, which has a portfolio of campus-style hyperscale data centres in China, India, and Malaysia.
A month before that deal, the vehicle loaned $33 million to Elite UK Commercial Holdings to support the acquisition of a UK-wide portfolio of 97 regional offices known as the Hayhill Portfolio.
Pierfront operates as an independent company under Singapore government-backed finance provider Clifford Capital, which is 40.5 percent owned by Temasek, while Prudential holds another 20 percent. Sumitomo Mitsui, DBS, Standard Chartered and Manulife each hold stakes of just under 10 percent.
Following a Debt Strategy
Intending to capture the growing potential of alternative lending, Keppel is making its move at the same time as compatriot ARA Asset Management has made inroads into the asset class.
Just last week, the Warburg Pincus-backed fund manager announced that it had taken a majority stake in London-based non-bank lender Venn Partners LLP for an undisclosed sum.
ARA is providing cornerstone investment and working capital to drive the expansion of ARA Venn, which currently has £5 billion in assets under management, into real estate-backed credit markets in Europe, as well as other geographies in the future.
Pierfront Capital reaches first close on debt fund
IJGlobal
Pierfront Capital reaches first close on debt fund
Viola Caon
Singapore-based Pierfront Capital Fund Management (PCMF) has reached a $200 million first close for the Keppel-Pierfront Private Credit Fund.
The fund is jointly run by PCMF and Keppel Capital Holdings, each of which has committed $100 million.
PCMF is 90.91% and 9.09% held by Temasek and SMBC, respectively.
The fund is the first of a series targeting a differentiated private credit investment strategy that focuses on real assets.
It aims to provide debt solutions to corporates or projects predominantly in real asset sectors of the Asia-Pacific region, such as infrastructure, real estate, offshore marine, transportation, energy and natural resources, where such financing needs are not met by traditional commercial banks.
Since its establishment in 2016, PCMF has committed close to $400 million in 15 investments with four exits to-date, achieving over mid-teens gross internal rate of return.
The first close of the Keppel-Pierfront Private Credit Fund follows Keppel Capital’s announcement on 13 November 2019 with respect to the acquisition of a 50% stake in Pierfront Capital from PCMF, which has since been completed.
The addition of Keppel Capital as a shareholder will add value to Pierfront Capital’s deal sourcing networks and market intelligence, amplifying its long-term prospects.
Keppel-Pierfront real asset private credit fund raises initial $200m
IPE Real Assets
Keppel-Pierfront real asset private credit fund raises initial $200m
IPE Staff
Singapore-based fund manager Pierfront Capital Fund Management (PCMF) has raised an initial $200m (€180.7m) for its second real asset private credit fund.
The Keppel-Pierfront Private Credit Fund is jointly sponsored by PCMF and Keppel Capital, each of which has committed $100m in the first close of the fund.
PCMF said the fund aims to provide debt solutions to corporates or projects predominantly in real asset sectors of the Asia-Pacific region, such as infrastructure, real estate, offshore marine, transportation, energy and natural resources, where such financing needs are not met by traditional commercial banks.
PCMF is 90.91% and 9.09% held by Temasek and Sumitomo Mitsui Banking Corporation (SMBC), respectively.
Stephane Delatte, CEO and CIO of Pierfront Capital, said: “The continuing participation of leading financial institutions like Temasek and SMBC speaks to the depth of our commitment and expertise in meeting the increasing demand for specialist intermediate capital in real asset sectors.
“Our long-term strategic partnership with Keppel has a significant positive bearing on our real asset investment focus given its extensive networks and in-depth operating experience in our sectors of focus.”
Christina Tan, CEO of Keppel Capital, said: “Private debt is a growing asset class, particularly in today’s environment in Asia-Pacific, where we have observed considerable demand for alternative lending solutions to meet capital needs of corporates and projects in real asset sectors, arising from the structural tightening of traditional bank lending in select markets.
“We believe that this increasing demand for alternative lending solutions, coupled with the Keppel Group’s capabilities and PCMF’s track record in credit investments, positions the fund well to capture opportunities in Asian private debt markets.”
Pierfront Capital Fund Management attracts $200M for fund
SP Global
Pierfront Capital Fund Management attracts $200M for fund – IPE Real Assets
Sylvia Cycil
Pierfront Capital Fund Management Pte. Ltd. secured an initial $200 million for the Keppel-Pierfront Private Credit Fund, IPE Real Assets reported.
The Singapore-based fund manager and Keppel Capital are jointly sponsoring the real asset private credit fund, with a contribution of $100 million each at the first close, the March 30 report noted.
The investment vehicle intends to offer debt solutions to corporates or projects mainly in real asset sectors of the Asia-Pacific region.
Singapore’s Pierfront Capital raises $200m for first close of private credit fund
Dealstreet Asia
Singapore’s Pierfront Capital raises $200m for first close of private credit fund
Deviana Chuo
Singapore-based fund manager Pierfront Capital Fund Management on Monday announced the first close of its latest real asset private credit fund at $200 million.
The fund, Keppel-Pierfront Private Credit Fund, secured $100 million each from its two sponsors, Pierfront Capital Mezzanine Fund (PCMF) and Keppel Capital Holdings. PCMF is owned by Temasek Holdings (90.91 per cent stake) and Japan’s Sumitomo Mitsui Banking Corporation (9.09 per cent).
Pierfront Capital on Monday also announced that it has received the Capital Markets Services licence for fund management from the Monetary Authority of Singapore.
The fund manager’s latest private credit fund seeks to provide debt solutions predominantly in Asia Pacific’s real asset sectors, including infrastructure, real estate, offshore marine, transportation, energy and natural resources. Its first close comes after Keppel Capital acquired a 50 per cent stake in Pierfront Capital for about $7.8 million in November 2019.
“Private debt is a growing asset class, particularly in today’s environment in Asia-Pacific, where we have observed considerable demand for alternative lending solutions to meet capital needs of corporates and projects in real asset sectors, arising from the structural tightening of traditional bank lending in select markets,” said Keppel Capital CEO Christina Tan in a statement.
Keppel Capital had around S$33 billion in assets under management (AUM) by the end of 2019. The company has a diversified portfolio that includes real estate, infrastructure and data centre assets.
Keppel-Pierfront Private Credit Fund holds first close
Institutional Real Estate, Inc
Keppel-Pierfront Private Credit Fund holds first close
Kali Pensall
Pierfront Capital Fund Management, a subsidiary of Singapore-based alternative credit investment company PCMF, has completed a first close for its Keppel-Pierfront Private Credit Fund.
The fund is jointly sponsored by Pierfront Capital Mezzanine Fund (PCMF) and Keppel Capital Holdings, each of which committed $100 million to the fund’s first close.
The fund’s strategy is to provide credit to corporates or projects in the real asset sectors of the Asia-Pacific region, where financing needs are not met by traditional commercial banks. These sectors include infrastructure, real estate, offshore marine, transportation, energy and natural resources.
In November 2019, Keppel Capital purchased a 50 percent stake in Pierfront Capital for $7.8 million in cash. Under the terms of the deal, Pierfront Capital agreed to act as the investment manager of Keppel-Pierfront Private Credit Funds.
Singapore fund manager raises $200m for private credit fund
Citywire Asia
Singapore fund manager raises $200m for private credit fund
Andrew Wong
Singapore-based Pierfront Capital Fund Management marked the first close of its private credit fund at $200m.
The Keppel-Pierfront Private Credit fund aims to provide debt solutions to corporates or projects in real asset sectors within the Asia-Pacific region.
Keppel Capital, a Singaore-based fund manager, and the Pierfront Capital Mezzanine fund each committed $100m in the first round.
The Pierfront Capital Mezzanine is a private credit fund that is backed by Temasek and Sumitomo Mitsui Banking in a 90.91%-9.09% split.
It is managed by Pierfront Capital, a company focused on private credit and mezzanine financing solutions in real assets
With the first close, Pierfront Capital also attained its capital markets services license from the Monetary Authority of Singapore.
The newly-granted CMS license will allow the firm to deal with capital markets products and manage funds in Singapore among other regulated activities.
‘Private debt is a growing asset class, particularly in today’s environment in Asia-Pacific, where we have observed considerable demand for alternative lending solutions to meet capital needs of corporates and projects in real asset sectors,’ said Christina Tan, CEO of Keppel Capital.
Last November, Keppel Capital, the asset management arm of the Keppel Group, bought a 50% stake in Pierfront Capital for $7.8m
In January, Pierfront Capital raised $360m for the initial close of the Keppel Asia Infrastructure fund, which is targeting $1bn in total commitments.
Tee International secures US$15m investment from Pierfront Capital
VIVIEN SHIAO
SINGAPORE
TEE International, an engineering, infrastructure and real estate group, said on Tuesday that it has secured a US$15 million investment from Pierfront Capital Mezzanine Fund, a Temasek group investment company which focuses on growth capital for asset and corporate acquisition, refinancing and project expansion.
Going forward, some plans that TEE is exploring include expanding its wastewater treatment plant business in Thailand. Its first hybrid thermal power plant in Iligan, Philippines is expected to be commissioned and will start operations in the second half of 2018.
CK Phua, group chief executive and managing director of TEE, said that it was trade agency International Enterprise (IE) Singapore that linked the companies up.
"With new capital being pumped in, we are excited to see our infrastructure business scale to new heights in the upcoming years," he said.
Stephane Delatte, chief investment officer of Pierfront Capital, affirmed support for TEE. "With the firm belief in its business strategies and future plans, we look forward to seeing TEE expand and grow further internationally," he added.
The investment company offers junior debt, mezzanine and structured financing solutions in capital intensive businesses across a wide range of sectors including, but not limited to infrastructure, energy, transportation, telecommunications and logistics.
During the last quarter of 2017, TEE has announced several developments, namely strategic partnerships with Catalist-listed Advancer Global Limited and solar solutions and services provider Malaysian Solar Resources.
Most recently, TEE entered into a joint venture with Advancer Global and an independent third party financial investor and business associate of the group for the purpose of acquiring Chiang Kiong Environmental and Envotek Engineering for an aggregate consideration of S$18.5 million.