Singapore-based investment manager Orion Credit Capital Asia has received an equity investment from Canadian pension fund OMERS that will help it strengthen its existing platform and accelerate its growth plans.
Orion Capital Asia was spun out of Olympus Capital Asia, a private equity firm focused on sectors such as financial services, renewable energy and healthcare, among others.
Orion Capital Asia manages investment vehicles that provide secured loans to middle-market businesses that are owned by both private equity sponsors and local entrepreneurs. It doles out loans to companies that have been underserved by traditional banking channels to finance their organic (expansions) and inorganic growth plans (M&A).
Through the investment, OMERS will be able to expand its mid-market credit portfolio in Asia, said its capital markets (Asia) senior managing director Ashish Goyal. “Growing our investment footprint in Asia is a strategic priority for OMERS and this investment is an important initiative in achieving our goals.”
Founded in 1962, OMERS, or Canadian pension fund Ontario Municipal Employees’ Retirement System, has assets worth $109 billion under management.
It manages a diversified portfolio of investments in public markets, private equity, infrastructure, and real estate.
In August 2020, DealStreetAsia had reported how OMERS is looking to expand its portfolio of infrastructure assets in Asia. The investment manager is eyeing sectors such as telecommunications, renewable energy, and road.
In the Asia Pacific region, OMERS recently made headlines when it acquired an additional 7 per cent stake in Warburg Pincus-backed logistics real estate developer ESR. The deal was reportedly valued at HK$3.8 billion ($490 million).
It also acquired a 19.9 per cent stake in Australian electricity transmission company TransGrid, a deal estimated to be worth over A$2 billion ($1.4 billion), per Australian Financial Review.
Earlier in 2019, OMERS spent $121 million for a 22.4 per cent stake in IndInfravit Trust, marking its foray into India’s infrastructure sector.