Temasek, the state investment corporation of Singapore, announced on Friday that it has created a fully owned private credit organization with an initial portfolio of S$10 billion ($7.5 billion), which consists of credit funds and direct investments.
In recent years, the thriving private credit market has seen an increase in participation from institutional worldwide investors.
Stricter rules after the Silicon Valley Bank disaster in 2023 have made it more costly for traditional lenders to finance riskier loans, which have led to a sharp increase in private credit, or lending to businesses by organizations other than banks.
Preqin statistics revealed that the asset class is expected to increase from $1.5 trillion at the end of 2023 to $2.6 trillion by 2029.
In keeping with that pattern, BlackRock, the biggest asset manager in the world, revealed on Tuesday that it would pay roughly $12 billion to acquire private lending company HPS Investment Partners.
According to a statement from Temasek, a group of about 15 credit investment specialists from its credit and hybrid solutions team will oversee the organization.
They will have offices in Singapore, London, and New York. CEO Nicolas Debetencourt, who has been in charge of Temasek’s credit and hybrid solutions since 2016, will be in charge of it.
Temasek said that after more than ten years of investing in credit funds, a specialized organization will assist in growing its portfolio of credit and hybrid solutions and seizing international private credit opportunities.
Laptops 1000This is on top of Seviora Group, Temasek’s asset management company, which also comprises SeaTown Holdings International, which provides private lending solutions throughout Asia.
As of March 31, Temasek had a total portfolio worth S$389 billion. The company has prioritized long-term investments with themes including sustainability and digitization.
