CLSA Capital Partners, the asset management business of Hong Kong-based broker CLSA, announced on Wednesday the final closing of its first secured private debt fund, the Lending Ark Asia Secured Private Debt Fund, at $226 million.
The commingled fund held the final closing on December 8 with capital commitments from international limited partners (LPs). Together with the fund, CLSA Capital Partners’ secured private debt investment strategy platform manages a total of $626 million, including target allocations from separately managed accounts established in conjunction with the new vehicle.
The fund, which has invested over 82 per cent of its capital commitments, is managed by Lending Ark Asia Secured Private Debt Holdings Limited, a joint venture between Lending Ark Capital Limited’s principals, Gregory Park and Carol Lee Park, and CLSA Capital Partners.
It invests in high-quality and secured private debt opportunities across the Asia Pacific region, consisting of privately-negotiated, three- to five-year maturity secured private debt financing, senior/mezzanine tranches of asset-backed securities, and bank-collateralized loan obligations. The fund distributes quarterly US dollar current income.
Established in 1995, CLSA Capital Partners manages a diversified range of strategies including private equity, real estate, credit, and transportation & real assets. It operates from eight offices across the Asia Pacific region, including Hong Kong, Singapore, and Tokyo. The firm manages over $5 billion in total assets under management (AUM), according to its website.
With the fund, Lending Ark Asia seeks to capture opportunities that arise from the imbalance between the growing demand for credit from issuers serving the rising Asian middle-class, and the shrinking supply of credit available from banks due to capital constraints.
This market dislocation creates a credit vacuum that allows the fund’s investment team to originate, structure, and invest in privately-negotiated and secured debt instruments across select Asian jurisdictions and asset classes.
“Lending Ark Asia applies a direct and powerful approach to private credit investing across the Asia-Pacific region, focusing only on market-leading companies that embrace Lending Ark Asia’s asset-backed lending capabilities and stringent underwriting requirements. Despite today’s challenging, low-rate environment, Lending Ark Asia is well-positioned to expand as private credit grows in the region,” said Gregory Park, Lending Ark Fund head & chairman of the Investment Committee, in the statement.
Carol Lee Park, managing director of Lending Ark and Investment Committee member, said: “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.”
The fund’s Revolving Senior Notes and Mezzanine Notes have been assigned a credit rating of “A” and “BBB,” respectively, by Egan-Jones Ratings Company.