SMBC asset management arm, Aravest get US$165 million for Apac real estate credit
The strategy spans the asset life cycle, including construction, bridge and stabilised stages
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[SINGAPORE] Sumitomo Mitsui Banking Corporation (SMBC) Group’s asset management arm and Aravest Private Funds have secured US$165 million in commitments for an Asia-Pacific real estate-focused private credit strategy.
The move is the first in a series of private credit strategies to be developed by SMBC Group under a private markets platform, based on a statement from Sumitomo Mitsui DS Asset Management.
The firm said that the strategy was initially launched in 2025 with commitments of US$120 million, but increased to US$165 million following additional capital commitments.
Japan has long been targeted by global alternative asset managers, including Blackstone and KKR, as a source of funding for private markets.
But in recent years, local financial institutions have followed suit by tying up with direct lenders or by allocating more resources internally to such assets.
Among recent overseas initiatives by the Japanese banking group, Bain Capital and SMBC have partnered for a new European loan platform targeting corporate borrowers in Europe and the UK.
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SMBC’s push comes at a time when the private credit industry in the US is reeling from a series of high-profile setbacks, with lenders marking down investments and funds capping redemptions.
However, Asia may be more insulated from such concerns given its limited exposure to the software sector, more conservative lending practices and reliance on closed-ended vehicles.
The Sumitomo Mitsui DS Asset Management and Aravest credit strategy can span the asset life cycle, including construction, bridge and stabilised stages, based on the statement.
It will focus on credit transactions secured by high-quality real assets, and be supported by other group entities, the firm added. BLOOMBERG
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