Keppel Corporation has entered into an agreement for sale and purchase (SPA) to purchase half of the 50% stake it doesn’t have within Pierfront Capital Fund Management Pte. Ltd. on the 2nd of October. The stake was purchased through Clifford Capital Holdings.
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Pierfront Capital offers bespoke private credit solutions for financing the real asset sector. It concentrates on corporate credit to operating businesses with businesses that have defensive infrastructure models across the real asset sector across Asia Pacific, such as transportation, energy, telecommunications and logistical and social infrastructure.
The platform was launched in the year 2015 through Clifford Capital. Following the successful launch of the initial private credit fund Clifford Capital Holdings and Keppel formed a partnership in the year 2020. Both parties also witnessed their co-sponsorship of a third private credit facility, Keppel-Pierfront Private Credit Fund, LP (KPPCF) in 2020.
KPPCF has reached its final close in 2022. The top investors KPPCF attracted are some of the world’s most renowned institutional investors like those who invest in the Alberta Investment Management Corporation on behalf of some clients as well as The Asian Infrastructure Investment Bank, GCM Grosvenor on behalf of an account managed separately, and Manulife.
“We think that the asset class of private credit has a great long-term growth opportunity particularly in the current volatile economy and more slack credit markets. We’re excited about the potential within the Asia-Pacific region, as there is a rising amount of businesses looking for specialized intermediate capital solutions” states Christina Tan, CEO of Keppel’s fund management company as well as chief investment officer at Keppel.
“We think that the increasing demand to find alternative solutions for lending together with Keppel’s extensive networks and vast operating expertise in the real asset market will enable Pierfront to strategically position its current and forthcoming credit funds to take advantage of the opportunities available in Asian private markets for debt. This will enable investors to offer attractive returns that are risk-adjusted and with the ability to protect against downside risks,” she adds.
“I want to thank Keppel, Clifford Capital and the Pierfront Capital team for all their assistance and dedication to creating this Pierfront Capital platform. Clifford Capital remains a co-sponsor of KPPCF together with Keppel. In the meantime, as Clifford Capital turns its attention to other strategic initiatives we are looking forward to continuing our long-term and multi-faceted partnership with Keppel and would like to wish Pierfront Capital and Keppel the best of success in the coming years,” says Rajeev Kannan the outgoing chairman of Pierfront Capital and non-executive director of Clifford Capital.