CLSA raises $226m for debut Asia private debt fund

The fund, managed by CLSA’s private credit division Lending Ark Asia, focuses on three-to-five-year maturity secured private debt financing, senior and mezzanine tranches of asset-backed securities, and bank-collateralized loan obligations. It has already invested 82% of its capital.

CLSA manages $626 million across its overall secured private debt strategy, including allocations from separately managed accounts established in conjunction with the fund. The platform is touted as the first A-rated consumer SME loan and trade receivables asset-backed private credit strategy in Asia Pacific.

“With more middle-class Asians taking on Western-style consumption patterns, Lending Ark Asia’s asset-backed private debt strategy captures a highly scalable opportunity in the fastest-growing region in the world,” Carol Lee Park, a managing director at Lending Ark, said in a statement. “Lending Ark Asia is supported by the strong regional platform of CLSA and capitalizes on its proprietary origination network and a high-caliber, diverse investment team.”

SMEs that previously considered private debt financing too expensive are increasingly considering it an attractive option during COVID-19 as revenue streams and business models are challenged, often prompting concerns about the ability to service existing debts.

Recent fundraising targeting this opportunity set pan-regionally includes ADM Capital raising $630 million for a credit fund for mid-sized companies and Sammasan Capital launching a $300 million SME credit fund.

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• Topics
• Fundraising
• Credit/Special Situations
• Asia
• CLSA Capital Partners
• SME