Global asset manager and operator Keppel Ltd. (Keppel) is pleased to announce the first close of Keppel Private Credit Fund III (“Fund III”) with approximately US$300 million of committed capital. Fund III was launched earlier this year 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”). These first two funds have committed over US$820 million in nearly 30 investments and have exited from half of these investments, which have delivered attractive risk-adjusted returns of low- to mid-teens in US dollar terms.

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 private credit strategy seeks to capitalise on the significant continued growth of private credit assets under management in Asia Pacific, which have quadrupled over the past decade, reaching US$124 billion^[1] last year, yet representing only about 6% of the total global private credit market. Given that the Asia Pacific region is expected to contribute over 60% of global GDP growth over the next decade, there are considerable opportunities for its private credit market to expand. Our 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.”  

The abovementioned first close of Keppel Private Credit Fund III is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel for the financial year ending 31 December 2024.

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About Keppel

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.

^[1] Source: Preqin as of September 2023