Yangzijiang Financial partners Singapore-based fund manager to invest in Asia private credit assets

YANGZIJIANG Financial Holding will team up with Singapore-based fund manager Tahan Capital Management to invest in private credit assets in Asia.

The partnership is viewed as a “strategic move to diversify the group’s portfolio and promote sustainable growth in the region”, the financial company said in a bourse filing Monday (Mar 6). It added that it sees “great opportunities” ahead for Asia private credit assets “in view of the secular growth trend in the region and the required funding needs”.

Citing data from investment data company Preqin, Yangzijiang Financial noted that the private credit market in the Asia-Pacific has grown significantly over the last few years and is expected to expand further.

Yangzijiang Financial has previously entered into various agreements with Tahan Capital Management to “invest and develop Singapore as an asset management hub for private credit in Asia”. The Singapore-based fund manager specialises in investing in both public and private credit, said the company.

“The private credit market in Asia has experienced strong growth in recent years, supported by rising investor interest and increasing demand for alternative debt that complements traditional financial institutions lending,” said Vincent Toe, the company’s chief executive and chief investment officer.

“With the current interest rate environment, private credit offers a comparatively attractive return with the security of highly structured and well-collateralised investments in a portfolio that can withstand the forces of a choppy market and uncertain market valuations,” he added.

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Shares of Yangzijiang Financial closed S$0.005 or 1.3 per cent higher at S$0.38 on Monday before the announcement.