EFA Group completed the first close of its planned $300 million direct-lending fund, with commitments from existing and new institutional investors, the Singapore-based alternative asset manager said Monday.
The fund will provide secured term loans to established companies in Southeast Asia, Australia and New Zealand, with a focus on the natural resource, manufacturing and logistics sectors, EFA Group said in a statement. Loans will include environmental, social and governance (ESG) considerations, it added.
“The strong support and commitments we received so far from both existing and new investors have been encouraging, and we were able to showcase our deal origination capabilities by deploying that capital immediately,” Xavier de Nazelle, head of private credit for EFA Group and the fund’s portfolio manager said in the statement.
“We have an extensive investor pipeline in our target markets that our team expects to execute in the coming months,” he added.
EFA Group says it has a network of over 300 borrowers to target for loans.
Francois Dotta, CEO of EFA Group, said his company’s senior management team has also “invested significantly” with its limited partners in the fund.
The final close at $300 million is expected by the end of 2020, with funds expected to come from the existing network of investors, capital allocators and via a partnership with a market specialist in Japan, EFA Group said.
The company financed more than $3 billion in transactions in 2018, according to its website.
EFA Group provides alternative financing solutions to enterprises in Asia, Middle East, Europe and Africa and currently has over $700 million of assets under management. The firm is regulated by the Monetary Authority of Singapore under EuroFin Investments Pte Ltd.
Correction: This item has been updated to correct the EFA Group’s assets under management. EFA Group no longer has a Dubai office.