At over $612 M, Temasek’s SeaTown closes its third private credit fund for first time

With more than $612 million in capital commitments, SeaTown Holdings International, an alternative investment company with an emphasis on Asia and a wholly-owned subsidiary of Temasek’s asset management group Seviora Holdings, has announced the first close of the SeaTown Private Credit Fund III (PCF III).

According to a statement from the company, this is the most recent milestone in SeaTown’s expanding private credit franchise, which builds on the successful deployments of PCF I and PCF II to satisfy growing investor demand for Asia Pacific’s vibrant private credit opportunities.

“We are thankful for the continued trust of our investors. As markets evolve, private credit plays an increasingly important role in providing income-generating assets with built-in downside protection,” said Chi Kit Chai, Chief Investment Officer, SeaTown.

“Our private credit strategy’s continued success reflects the strong conviction we share with our investors – that Asia Pacific (APAC) offers a uniquely attractive landscape for performing credit,

“With our strong track record, experienced teams and unparalleled ecosystem access, we are excited to continue capturing compelling private credit opportunities across APAC and helping investors build resilient portfolios that can navigate diverse market cycles,” he added.

According to the statement, the first closing of PCF III attracted interest from both new and returning investors, demonstrating the high level of investor confidence in SeaTown’s demonstrated capacity to consistently source, structure, and carry out complex deals throughout APAC.

It also shows how dedicated SeaTown is to building long-lasting investor relationships both locally and internationally. Notably, the fund received commitments from a growing number of international and diverse investors from Japan, Taiwan, Singapore, and the Middle East.

“What sets our private credit strategy apart is how we provide value for our investors, leveraging the team’s deep capabilities in sourcing proprietary transactions and structuring bespoke solutions across the region,

“With PCF III, we look forward to continuing to provide investors access to differentiated, income-generating opportunities across Asia Pacific, seeking to deliver consistent, risk-adjusted returns,” said Eddie Ong, Deputy Chief Investment Officer and Head of Private Investments, SeaTown.

PCF III takes the same methodical and active approach as its predecessors, and it was thoughtfully created to satisfy the changing demands of income-oriented investors.

The private credit approach offers highly customized financing options and is ideally positioned to seize proprietary performing credit opportunities in APAC.

For multi-asset portfolios looking for income, diversification, and structured downside protection, it provides an alluring building block.

Using a sector-neutral approach, the strategy seeks to provide investors with a double-digit distribution yield and a compelling mid-teens net return over the fund’s lifetime.

For PCF III, Clifford Chance is the lead fund counsel.