The Barings Australian Private Credit Fund and the Barings Developed Asia Pacific Private Loan Fund 1A were launched with a total amount of $690 million.
The Australian Private Credit Fund is an open-ended private credit solution that leverages Barings’ capabilities in Australia and New Zealand and aims to provide attractive returns through current income and capital appreciation. This will be done by investing in loans directly to mid-market private companies in Australia and New Zealand.
This is suitable for institutional and wholesale investors seeking immediate exposure to private credit with attractive return potential.
It has already been invested to the tune of $230 million by a global multi-investment manager.
The second fund – Developed Asia Pacific Private Loan Fund 1A – is a closed-end fund anchored by an Asian institutional investor.
Justin Hooley, Managing Director of Barings’ Asia Pacific Private Finance Group, said: “We believe the Australian private credit market is attractive due to its stable economic and legal environment, and has significant growth potential. in the years to come.
“We continue to identify numerous opportunities in the Australian private credit market due to our market position and the opportunities that arise from our current portfolio, despite the fact that there has been a decrease in merger activity and acquisitions. As one of the region’s most active lenders, with over 13 years of experience and a diverse portfolio, we are well positioned to take advantage of this exciting opportunity.
The Barings Asia Pacific Private Finance Group focuses on Singapore, Hong Kong, Australia and New Zealand and has deployed more than $5.8 billion.
A study by Schroders last month found that 51 percent of financial advisors and wealth managers in the Asia-Pacific region plan to increase their clients’ private equity allocations over the next two years, and 40 percent cent plan to increase allocations to private debt.
Shane Forster, Head of Investment Management for APAC, said: “The private credit market in Asia Pacific is rapidly evolving into an attractive opportunity for investors. It has attributes comparable to private credit in North America and Europe, including exposure to high-quality borrowers but with less competition for lending opportunities, geographic diversification, and exposure to growing developed economies such as Australia, New Zealand, Hong Kong and Singapore.
