Private credit fund receives $250 million in anchor commitments from undisclosed sources to fund its operations at Granite Asia.
Taking a Swing at the Private Credit Market in Asia Pacific
Singapore-based venture capital firm Granite Asia has secured a whopping $250 million in anchor commitments from top Asian sovereign wealth funds to finance its private credit strategy. This groundbreaking move comes with additional initial funding commitments from the company's existing general partners and its network of founders and entrepreneurs. The ultimate goal is to raise a staggering $500 million for the Libra Hybrid Capital Fund.
According to a recent statement, the fund focuses on providing secured loans, offering flexible, non-dilutive capital to well-established businesses seeking growth opportunities across the Asia Pacific. Roger Zhang, partner for credit strategy at Granite Asia, expressed excitement about the demand for such alternative financing methods, stating, "Our deal pipeline is both active and proprietary, driven by our deep understanding of the region."
Roger Zhang, previously a managing director at Blackstone Credit, and Ming Eng, an industry veteran with a background at Orion Capital Asia, will co-lead the Libra Hybrid Capital Fund. This move signifies Granite Asia's foray into the private credit market, following its rebranding of the Asian operations of GGV Capital last year.
The move towards private credit by Asian venture capital firms, including Granite Asia, highlights an inspiring shift in the region's investment landscape. Notably, Hong Kong-based Gaw Capital Partners and India's Kotak AlternateAsset Managers aim to raise $2 billion for two new private credit funds each.
The booming private credit market in the Asia Pacific region is attracting significant player involvement. Venture capital firms, like Granite Asia, are eager to support mid-sized companies with financing solutions beyond traditional equity or bank loans, aiding in their digital transformation.
Granite Asia's approach embodies a broader market trend where regional capital is increasingly backing mid-sized enterprises navigating uncertainties while global capital reallocates towards high-growth markets, such as digitalization and technology transformation, in Asia. With the number of Asia-Pacific focused private debt funds increasing by almost 50% in 2024, it's clear that the interest in the private credit sector is on the rise.
Jenny Lee, senior managing partner at Granite Asia, emphasized the importance of the new fund, saying, "Libra Hybrid Capital is the cornerstone of our multi-asset strategy, building on our 25-year track record of backing Asia's most innovative companies." Lee and Jixun Foo, who have extensive experience with venture capital at GGV Capital and are regularly recognized among the world's top venture capitalists by Forbes, co-manage Granite Asia, which oversees over $5 billion in assets under management.
In essence, Asian venture capital firms, including Granite Asia, are playing a pivotal role in the burgeoning private credit market by deploying sizable private credit funds that meet the growth and transformation needs of mid-market companies, while filling critical financing gaps with secured, non-dilutive debt solutions that are in high demand across the region.
Jenny Lee, senior managing partner at Granite Asia, is recognized among the world's top venture capitalists by Forbes. Granite Asia, which oversees over $5 billion in assets under management, is utilizing the Libra Hybrid Capital Fund to enter the private credit market. Zhang, partner for credit strategy at Granite Asia, aims to raise a staggering $500 million for the fund, which offers secured loans to mid-sized businesses in Singapore and beyond, as part of a broader market trend backing mid-sized enterprises navigating uncertainties while global capital reallocates towards high-growth markets in Asia.
