Temasek-backed investment firm SeaTown Holdings announced that it completed the first closing of its third private credit fund with more than $612 million in commitments from global investors.
The fund, SeaTown Private Credit Fund III (PCF III), attracted capital from investors across the Middle East, Japan, Taiwan, and Singapore, according to a company statement.
The first close comes a year after SeaTown Holdings secured over $1.3 billion in commitments for Fund II. It also raised $1.2 billion for SeaTown Private Credit Fund I.
SeaTown, a wholly owned subsidiary of Temasek’s asset management group Seviora Holdings, said the fund will provide tailored financing solutions to companies across the Asia Pacific.
It will target net returns in the mid-teens and double-digit distribution yields with structured downside protection.
The fund adopts a sector-agnostic approach and employs the same methodology as its predecessors, targeting companies across various industries in the Asia Pacific region.
SeaTown’s Private Credit Fund issues debt ranging from $30 million to $100 million with flexible loan periods of 1-6 years, depending on risk profile.
SeaTown chief investment officer Chi Kit Chai said private credit plays an increasingly important role in providing income-generating assets with built-in downside protection as markets evolve.
“Our private credit strategy’s continued success reflects the strong conviction we share with our investors – that Asia Pacific offers a uniquely attractive landscape for performing credit,” he added.
Fund III’s private credit strategy focuses on sourcing proprietary transactions and structuring bespoke solutions across the region, said Eddie Ong, deputy chief investment officer and head of private investments at SeaTown.
“With PCF III, we look forward to continuing to provide investors access to differentiated, income-generating opportunities across Asia Pacific, seeking to deliver consistent, risk-adjusted returns,” Ong added.
SeaTown has over $4 billion in assets under management across five open-end and closed-end strategies. The firm, founded and headquartered in Singapore in 2009, is owned by Seviora Holdings, Temasek’s asset management group.
In July, SeaTown Holdings joined a group of investors that provided private credit loans to Vietnamese conglomerate Vingroup’s subsidiaries VinFast Auto Ltd and Vincom Retail JSC.
The firm also committed to investing up to $89 million in Singapore-headquartered healthcare and life sciences company AddVita through SeaTown Private Capital Master Fund.
PCF III comes as Asia private credit fundraising has tapered off, as investors are walking a fine line between opportunity and caution, DealStreetAsia earlier reported.
Capital allocators are increasingly weighing whether the rewards justify the region’s complexity.
Fundraising by Asia Pacific-focused private debt funds has slowed sharply over the last five years, even as the region’s need for alternative financing continues to expand. Despite a slight uptick last year to $5.89 billion, fundraising has been on a downward spiral since 2020.
