Keppel’s private credit strategy offers bespoke financing solutions to businesses focused on infrastructure-related sectors including renewable energy. 

Private credit assets under management in Asia Pacific have nearly tripled over the past decade, reaching US$86 billion¹ in 2023. Despite this growth, they still represent only about 6% of the total global private credit market. With the Asia Pacific region expected to contribute over 60% of global GDP growth in the next decade, there are significant opportunities for the region’s private credit market to expand.  

Keppel’s private credit strategy aims to capitalise on these opportunities through bespoke private credit financing solutions, which are designed to address the funding gap in the Asia-Pacific infrastructure space and real asset sectors.   

In October 2024, Keppel achieved the first close of its Keppel Private Credit Fund III (Fund III), with approximately US$300 million of committed capital. With a target fund size of US$1 billion, Fund III has attracted capital commitments from top-tier global institutional investors, with Keppel, as the sponsor, committing US$100 million to Fund III. 

Fund III provides loans to companies with defensive infrastructure-like operating businesses, across a wide range of real asset sectors in Asia Pacific, including, but not limited to, renewable energy, transportation, telecommunications, logistics, social infrastructure and other core infrastructure. 

Representing the third vintage of Keppel’s private credit strategy, Keppel Private Credit Fund III builds on the successful track record of its prior two private credit funds in the series – Pierfront Capital Mezzanine Fund (Fund I) and Keppel-Pierfront Private Credit Fund (Fund II). With Fund III actively investing, the three funds have committed nearly US$900 million in 30 investments to date, across various infrastructure related businesses, including data centres, logistics facilities and warehouses. Half of these investments have been fully exited with attractive return profiles of low- to mid-teens. 

Ms Christina Tan, CEO of Fund Management and Chief Investment Officer, Keppel Ltd., said, “We would like to thank our Limited Partners for their strong vote of confidence with the successful first close for Keppel Private Credit Fund III. The top-tier investors we have attracted are a strong endorsement of the institutional quality of our platform – one that is supported by Keppel’s extensive networks and in-depth operating experience in areas such as renewable energy and core infrastructure which are part of Fund III’s sectors of focus. We are confident that Keppel will continue to deliver attractive risk-adjusted returns with downside protection to our investors.”  

Mr Stephane Delatte, CEO and Chief Investment Officer of Keppel Credit Fund Management, the manager of Keppel’s private credit funds, said, “Keppel’s differentiated investment strategy of offering bespoke financing solutions to businesses focused on infrastructure-related sectors places us in good stead to ride on the tailwinds of the strong, sustained demand for infrastructure developments in the region.” 

 ¹ Source: Preqin as of December 2024