CapitaLand Investment Targets US$500 Million for Third Credit Fund
Synopsis
CapitaLand Investment targets US$500 million for a new Asia Pacific credit fund, as scrutiny grows over the region’s private credit market following Bathla’s collapse.
Key Highlights
- The third Asia Pacific credit fund for CapitaLand Investment, APC III, has a target of US$500 million in commitments.
- This vehicle is the second of its kind, following ACP II, which closed with $320 million.
- CapitaLand will primarily target existing investors and is eyeing a first closing by year-end.
- The fundraising comes amid rising scrutiny on Asia’s private credit market after the Bathla Group collapse.
Relentless Credit Strategy Continues Through New Fund
Sources say Singapore’s CapitaLand Investment is aiming for US$500 million in commitments from investors against its third Asia Pacific credit programme. The latest fundraising effort of the asset manager controlled by Singaporean investment company Temasek Holdings comes only months after it secured US$320 million for its second fund, ACP II where total assets under management increased to about US$600 million.
The firm is following its existing credit strategy by focusing on senior secured asset-backed investments with the new fund, APC III, according to people who spoke on condition of anonymity because the details are private. The fund, which will focus mainly on existing investors, is targeting a first close by the end of the year for CapitaLand Investment. CapitaLand Investment’s spokesperson did not comment.
Fundraising Comes Despite Increasing Oversight of Private Credit
It follows heightened scrutiny of private credit in Asia amid dwindling investor confidence that loans secured against collateralised assets are still safe bets. The collapse of heavily private debt-reliant Australian property developer Bathla Group has raised fears that the A$200 billion private credit market in Australia, where real estate accounts for as much as 60% of lending, is feeling pressure.
Background on CapitaLand’s Credit Programmes
Meanwhile, the first credit fund from CapitaLand, the A$265 million-acquired ACP I - funded two grade-A mixed use properties in Melbourne and Adelaide, the company said in April. The second tranche funded mortgage loans on logistics, office and residential properties in Sydney and Seoul.
The acquisition of Wingate Group Holdings in 2025, has also allowed access to more than $10 billion deployed across the Asia Pacific since through its real estate credit platform. Wingate, one of Australia’s biggest private credit managers, was one of more than 40 asset managers who lent Bathla Group money before it folded.
Recent Leadership Changes
CapitaLand Investment has also seen some recent personnel changes. The firm shut its special opportunities team, which dealt with bigger risk investment strategies in July. Meanwhile, Jeff French was appointed in March as COO of its alternatives business, having recently left BNP Paribas Asset Management.
Source: Strait Times
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