January Capital’s private-credit tech fund raises over US$85 million in first close 

JANUARY Capital has raised more than US$85 million of committed capital in the first close of its growth credit fund, said the Singapore-based asset manager on Wednesday (Dec 18).

This comprises commitments of US$20 million each from two development finance institutions, the US International Development Finance Corporation and a European financial institution.

Other institutions, family offices and private wealth firms are also joining in.

The fund aims to offer loans of US$5 million to US$20 million to growth-stage, sponsor-backed technology companies in the Asia-Pacific region amid a growing funding gap. It will provide financing to the companies through senior secured loans.

“At the growth stage, companies are often seeking their first credit facility to diversify their capital base and demonstrate a track record of servicing debt,” said the investment firm.

It added: “These types of facilities also offer companies an ability to fortify their balance sheet, make acquisitions and achieve important growth milestones prior to a future financing round or eventual exit.”

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The Business Times reported previously that market watchers believe the funding winter for venture capital (VC) firms is showing early signs of easing.

While VC activity was muted in the first half of 2024, things have started to pick up. This comes as fundraising announcements by both VCs and startups made headlines in the second half of 2024. These included VC funds Intudo, Square Peg and Wavemaker, as well as startup Omni HR.

Fundraising activity for startups and funds are likely to be robust in the year ahead, noted market watchers.