DBS becomes lead investor in private debt fund Muzinich Apac
Muzinich & Co. launched the Muzinich Asia Pacific Private Debt I fund, with Asian investment giant DBS announced as lead investor for the fund.
The Asia Pacific Debt I fund marked one of Muzinich’s first forays into private debt, which was an area of strategic growth over the past year. It kicked off with the appointment of Andrew Tan as head of Asia-Pacific private debt last summer.
Muzinich said the recently launched fund has already garnered support from a variety of investors in Asia and Europe, including pension funds, insurance companies, financial institutions and family offices.
The fund invests in the debt of fundamentally sound companies across the region, which are mispriced due to market dislocation or temporary financial / operational strains. Muzinich focuses on mid-market companies because he believes he can negotiate better terms in a less crowded market.
Commenting on the launch, Andrew Tan said: “Investor interest in Asia-Pacific private debt continues to grow as there is growing awareness that an attractive risk / reward proposition, uncorrelated to public markets , exists in this region.
“Private debt allows us to work outside the confines of traditional lending with well-structured, personalized transactions that combine downside protection with the potential to share the success of growing a business through equity participation. “
Muzinich’s global private debt team includes 37 investment professionals in 12 offices in Europe, the United States and Asia-Pacific.