CLSA in the market to raise capital for Asia private credit fund

Hong Kong. Image: Pixabay

Hong Kong-headquartered asset management firm CLSA Capital Partners is raising funds for its Asia/Australia focused secured private credit strategy Lending Ark, according to a regulatory filing.

The firm has not specified a maximum target and timeline for Lending Ark Asia Secured Private Debt Fund I. The filing, which was signed by Hyein Jun, Chief Finance Officer at CLSA Singapore, said the fund is a private equity fund based in Cayman Islands.

Crunchbase data showed that Lending Ark Asia Secured Private Debt Fund has already made two investments – $5 million in the Series B funding round of PeopleFund and another $30 million in debt financing in the same company in June.

PeopleFund is a South Korea-based fintech platform that offers loans and investment products.

On its website, CLSA Capital said Lending Ark invests in high quality, secured private debt opportunities across Asia, Australia, and New Zealand.

The fund invests in privately negotiated, three- to five-year maturity, secured private debt financing, senior/mezzanine tranches of asset-backed securities, and bank collateralised loan obligations.

“Lending Ark’s strategy is to generate steady, current income while capturing the opportunity that arises from the imbalance between the growing demand for credit from issuer serving the rising Asian middle class and the shrinking supply of credit available from banks due to capital constraints,” CLSA said.

CLSA Capital Partners is the asset management business of CLSA, the international platform of China’s leading investment bank CITIC Securities. It has more than $5 billion in funds under management and eight offices across the region, including Hong Kong, Singapore, and Tokyo.

DealStreetAsia reported in April that CLSA Capital Partners was looking to raise $400-500 million for its fourth pan-Asia value-add real estate fund – Fudo Capital IV.

CLSA last raised $1 billion for its third Fudo fund, Fudo Capital III, in June 2015, exceeding an initial target of $850 million.