Media Features Archives

By Yantoultra Ngui, Reuters

Temasek-backed SeaTown Holdings has secured about $900 million in commitments for its Private Credit Fund III at its second close, after raising $612 million at its first close in August, the Singapore-based investment manager said on Wednesday.

The fund continues to attract demand from investors across the Middle East, Japan, Taiwan and Singapore and is “progressing in line with our internal expectations”, Eddie Ong, SeaTown’s deputy chief investment officer and head of private investments, told Reuters.

“We remain confident in achieving our fundraising milestones going into the final close,” he added, declining to give a specific date for that event.

Ong said PCF III’s ultimate fund size remains targeted to be in line with its previous two funds, for which SeaTown raised $1.2 billion and $1.3 billion, respectively.

Asia’s private credit market is projected to grow to $92 billion by 2027 from $59 billion last year, outpacing global averages, according to a report, opens new tab by the Alternative Investment Management Association, Simmons & Simmons, EY and Broadridge.

“While the broader private-credit fundraising environment has moderated this year, demand for Asia-focused private credit strategies remains robust,” Ong said.

Read more on Reuters (subscription may be required): https://www.reuters.com/world/asia-pacific/temasek-backed-seatown-secures-900-million-second-close-third-private-credit-2025-12-10/

SeaTown, owned by Temasek’s asset management group Seviora, has raised about US$900 million as of the second close of its Private Credit Fund III (PCF III), the investment manager said on Wednesday (Dec 10).

This close comes four months after its first close of over US$612 million back in August. Commitments to the fund come from existing and new investors across the Middle East, Japan, Taiwan and Singapore, with the bulk of funding for the latest close coming from private wealth channels in Singapore and Hong Kong.

“The fund is progressing in line with our internal expectations. We remain confident in achieving our fundraising milestones going into the final close,” Eddie Ong, deputy chief investment officer and head of private investments at SeaTown, told The Business Times.

The investment firm is targeting a fund size in line with prior vintages such as PCF II, which had a final close at over US$1.3 billion, and the final close of the first private credit fund at US$1.2 billion.

Private credit in the region continues to attract investor attention, even with the low penetration rate in Asia. Demand for Asia-focused private credit remains even though the broader private credit fundraising environment has moderated this year, noted Ong.

PCF III will be selective and focused on achieving a diversified sector and geographical exposure across Asia-Pacific. There will also be a strong focus on robust credit structuring, with potential transactions evaluated for impact on portfolio diversification in terms of collateral, risk profile, sector and geographic exposure.

Read more on The Business Times (subscription may be required): https://www.businesstimes.com.sg/companies-markets/temasek-owned-seatown-raises-about-us900-million-second-close-third-private-credit-fund

SeaTown Holdings International, a unit of Singapore’s Temasek Holdings Pte., has raised around $180 million from DBS Group Holdings Ltd.’s private bank clients for its third private credit fund, according to people familiar with the matter.

The fresh capital from the wealth channel helped SeaTown reach a second close for its Private Credit Fund III, or PCF III, bringing total commitments to roughly $900 million, the people said, who asked not to be identified discussing private matters. The fund’s first close was at $612 million in August, Bloomberg News reported earlier.

A SeaTown representative confirmed the amount of the second closing, but declined to elaborate further. A spokesperson for DBS declined to comment.

The fundraising highlights a broader trend of rising inflows from wealth clients into Asia Pacific’s private credit market, as managers across Singapore, Japan, and Australia seek to tap retail investors for billions of dollars in new capital.

Read more on Bloomberg (subscription may be required): https://www.bloomberg.com/news/articles/2025-12-10/seatown-s-private-credit-fund-hits-900-million-on-wealth-boost

By Eddie Ong, Deputy CIO and Head of Private Investments, SeaTown Holdings International

We are pleased to share that our Deputy CIO and Head of Private Investments, Eddie Ong, has published a byline in The Business Times on why Asian private credit is emerging as one of the most compelling risk-reward opportunities globally. He offers a clear view of how the market is shifting and what these developments mean for investors.

Asia-Pacific’s private credit ecosystem is undergoing a quiet but powerful transformation that could redefine how the region’s companies access growth capital. While just 6.6% of the global US$1.5 trillion private credit pool was attributed to APAC as of end-2023, the pace of expansion is striking. Private credit AUM in the region is projected to rise from US$59 billion in 2024 to US$92 billion by 2027, representing a 16% compound annual growth rate, according to a recent report from the Alternative Investment Management Association. The implications are significant for companies, institutional investors and the future of corporate finance across the region.

Asia-Pacific is in the midst of one of its strongest corporate expansion cycles in decades. With annual GDP growth forecast above 4% for at least the next five years, and the region set to contribute more than a third of global economic output by 2030, the demand for capital is intensifying. Yet, regulatory guardrails such as stricter Basel Accords have led regional banks to scale back on non-core and more complex corporate lending. Companies, particularly those seeking to scale quickly, face a new challenge: where to find flexible, long-term institutional funding.

Herein lies the unique appeal of private credit. Unlike traditional loans or capital market raises, private credit offers corporates customised solutions – often tailored in close partnership with borrowers, and structured with both downside protection and growth objectives in mind. For investors, the opportunity lies in accessing high-quality transactions in a region marked by structural inefficiencies and economic dynamism.

One of the most notable features of APAC private credit is its spread advantage over developed markets. As of June 2025, Western private credit spreads, reflecting increased capital inflows and softening monetary conditions, hovered at historical lows around 500bps. By contrast, the J.P. Morgan Asia Credit Index High Yield ended the same period at 450bps, with direct private credit transactions in APAC routinely commanding an additional premium of 300-500bps.

This spread exists not just because of perceived risk, but because of market inefficiencies stemming from supply-demand mismatches. APAC’s private credit transactions often require deep structuring expertise and local insight, but the payoff is compelling: enhanced yield with downside protections not commonly found in Western markets.

Whilst Western markets have moved towards “covenant-lite” structures, where borrower protections are thin, APAC lenders continue to insist on strong documentation and real, often multi-asset, collateral. Loans are typically secured with a mix of real estate, listed shares, and personal or corporate guarantees. In many cases, collateral may even sit outside the borrowing entity, providing an additional buffer in downside scenarios. Maintenance covenants are also commonly applied to a borrower’s balance sheet to monitor ongoing financial health, unlike incurrence covenants, which trigger only at specific events. This more conservative approach has real implications for recovery rates should a deal go south.

Moreover, innovative features such as equity kickers, warrants that allow lenders to share in a company’s future growth, can be embedded. This means that investors are not just collecting coupons; they are participating in the upside of Asia’s fast-growing enterprises, an attractive proposition as regional equity valuations remain modest compared to the US or Europe.

While APAC private credit presents compelling opportunities, the recent stress in US private credit markets underscores the importance of the disciplined approach and conservative structuring that has characterised the Asian market. Success in APAC requires deep local expertise to access regulatory environments, currency risks, and varying legal frameworks across jurisdictions. Lenders must carefully evaluate borrower transparency standards and ensure robust documentation, while borrowers should prepare for more intensive due diligence processes and higher covenant compliance standards. Investors must also navigate concentration risks, liquidity constraints, and the need for specialised local partnerships to fully capitalise on market inefficiencies.

As the region’s financing ecosystem matures, the most successful participants will be those who balance opportunity with prudence – prioritising strong governance, rigorous structuring, and genuine partnership with borrowers. For those willing to commit the expertise and resources, APAC private credit represents more than just a yield opportunity, but a long-term allocation to the region’s structural growth and resilience in an evolving global economy.

Sources: Preqin Global Report: Private Debt 2025, Alternative Investment Management Association: Private Credit in Asia 2.0, International Monetary Fund, World Economic Outlook: Real GDP Growth (accessed January 25, 2025), Pitchbook LCD, Bloomberg

Reflecting our commitment to Southeast Asia’s resilient and high-growth sectors, we are pleased to share that our investment of up to S$115 million in AddVita, a leading Singapore-based healthcare and life sciences distribution platform, was featured in The Business Times.

SeaTown’s investment supports AddVita’s strategy to expand across the region via a buy-and-build approach, enhancing access to medical technologies, pharmaceuticals, and ancillary services essential to healthcare providers in Asia.

As highlighted by Dickson Loo, Managing Director of Private Equity at SeaTown, “Healthcare and life sciences distribution business is a sector that we have a strong passion for, and it’s a core focus for our private equity fund. In order for quality healthcare to grow, there is also a need for all the ancillary services to grow alongside. So distribution is one key element where we think is important as well.”

This investment is a testament to our Private Equity team’s focus on the vital sectors of healthcare, business services and consumer in Asia.

Asia’s energy transition is accelerating, but a significant financing gap remains – especially for sectors that demand tailored and innovative solutions.

In a recent article by AsianInvestor highlighting how private credit is finding its place in Asia’s energy transition push, our Director of Sustainability, Kenneth Ho shared his views on how private credit lenders like SeaTown can provide much-needed solution capital for the region.

“Evolving technologies need lenders that understand operational risks and can adjust terms as revenue streams mature… Private credit’s ability to offer tailored financing makes it ideal for mobility solutions and infrastructure in areas like electric vehicles, fleet operators, and charging network developers that often require bespoke financing structures.” shared Kenneth.

This is made possible by the bespoke nature of private credit, offering flexible collateral structures that allow loans to be secured against other existing corporate assets, equity stakes, or cash flows, as well as an ability to realign loan terms as market conditions shift.

As Asia transitions to a low-carbon future, SeaTown sees private credit as an effective instrument to support the region’s financing needs.

Read more at AsianInvestor (subscription may be required): https://bit.ly/3ZkblPX

As traditional banks become increasingly selective in their lending practices – private credit is emerging as a crucial player in addressing the financing gap for Asia’s energy transition.

This shift is highlighted in a recent article by AsianInvestor, emphasizing how private credit solutions are stepping into this void, offering flexibility and tailored financing structures for early-stage and transitional green projects.

Kenneth Ho, Director of Sustainability at SeaTown, underscores the advantage of private credit by stating, “Unlike green bonds or bank loans, private credit can be reshaped over time using customised terms—an ongoing partnership approach which is ideal for dynamic growth projects.”

This ability to adapt financing solutions to meet the specific needs of energy projects is vital in a landscape where the International Energy Agency estimates a need for $4.5 trillion per year in clean energy finance until 2030 to limit global warming.

Moreover, private credit lenders can swiftly close transactions, providing certainty for borrowers in a market where timing is essential. “Private credit lenders can take a more flexible, solutions-oriented approach – drawing credit comfort from a different part of the group such as corporate or personal guarantees or collateral that is not correlated to the business.”, said Kenneth.

As the financing demand for Asia’s energy transition grows, SeaTown believes that private credit is poised to play a key role in the region’s shift towards a more sustainable energy future.

SeaTown’s Deputy CIO and Head of Private Investments, Eddie Ong, recently provided his views to AsianInvestor on this topic, shedding light on how private credit in Asia can offer meaningful insulation from the overheating conditions seen in developed market private credit, which are characterized by rising leverage levels and relatively looser lending standards.

Eddie shared that contrary to the West, where most private credit deal structures are covenant-lite and highly dependent on a borrower’s cashflow to repay the loan, the bespoke credit covenants and collateralized structures featured in Asia private credit can provide significant downside protection for investors.

“Relative to the West, Asia private credit is a less crowded investment. The pricing of private credit in Asia is still at a meaningful premium over the West and largely on a fixed rate basis, making it less vulnerable to a drop in pricing from a tapering of the fed funds rate, albeit with shorter loan maturities. In addition, features like hard collateral protection, debt incurrence and maintenance covenants, credit rating triggers, corporate and personal guarantees that are distinct in Asia private credit results in enhanced risk mitigation for Asian investors.” Eddie shared.

Read the full article by AsianInvestor here (subscription may be required): http://bit.ly/43zZyjD

Private equity is set for a more positive 2025, with institutional investors focusing on managers who invest in businesses that generate cash flows.

At a Seviora Group media roundtable, SeaTown’s Managing Director for Private Equity, Dickson Loo, shared his views on private markets in Asia Pacific alongside Seviora Group and Azalea Asset Management. They discussed how capital markets are opening up, and with inflation moderating and supportive interest rates, IPO opportunities are on the horizon.

“Obviously the capital markets are opening up a little bit, and I’m optimistic that with inflation moderating and interest rates (being supportive of) the stock market, this will provide IPO (opportunities),” said Dickson.

“In Southeast Asia, there are about 70 million SMEs that contribute about 45% of the region’s GDP. Having spoken to business owners in this segment for over a decade, we do see that there is a great acceptance in terms of using private equity as a source of funding,” he said.

“Therefore, I (would) say that business owners, who have been traditionally a bit more hesitant, are a lot more sophisticated, not just on the private equity side, but also on the private credit side. And this is really driving growth in this segment,” he added. “We are also quite excited about this segment. We see a lot more interest moving into the segment because there is quite a lot of dry powder looking to deploy in Southeast Asia.”

At Preqin’s Private Equity, Venture Capital & Private Debt in 2025 webinar in January 2025, our Deputy CIO and Managing Director for Private Investments, Eddie Ong, shared his insights on key trends and opportunities in Asia Pacific Private Markets.

Eddie highlighted that as developed private credit markets undergo significant shifts—marked by declining risk-free rates and narrowing credit spreads—investors are increasingly turning to Asia. Speaking to some of the unique benefits available to allocators, he explained, “In Asia, credit structures are typically more diversified, with strong credit governance and protection through hard collateral. This creates significant value for investors looking at Asia private credit from a risk-adjusted perspective.”

About
Strategies
Sustainability
Newsroom
Contact
Careers

SeaTown Holdings International Pte. Ltd.
(A member of Seviora Group)

3 Fraser Street #06-23 DUO Tower
Singapore 189352

T +65 6622 9022
F +65 6820 6808

Japanese Disclosures | Privacy Statement | Terms of Use