Private credit might be less attractive than it was last year as investors rush into the market, but there are sweet spots to be found.
The new fund will be run by Eliza Lau, who will act as CIO, along with Denise Hu and Kamni Bharwani. It has a target return of Libor plus 10% and has projected volatility of 10%. Maximum leverage for the new fund is 1.5x and redemption is quarterly.
The Asia Focus Fund is more concentrated and has a higher return profile than the Sail Pacific Explorer fund which was launched in 2004. The new fund has 12-15 underlying hedge fund investments, while the Explorer fund is more diverse with 35 investments. Furthermore, Explorer tends not to participate in emerging hedge-fund managers, but the Asia Focus fund will have more flexibility to invest in early-stage funds.
ôI can see attractive opportunities in certain pockets within the Asian hedge-fund space, such as fixed income and credit arbitrage relative-value plays,ö says Lau, who serves as CEO and CIO of Sail Advisors. ôThe credit tightening gives openings for small- and mid-cap financing opportunities in China, India and Korea for credit strategies and private deal-focused hedge funds. Also with M&A activity on the rise in Asia, there are more opportunities for event-driven and special-situations funds.ö
HSBC is fund administrator and custodian. The fund lawyers are Deacons.
Regulators keep their eyes open on tightening insurance industry by introducing more detailed risk management requirements, which could bring pressure on smaller players.
China and India are more obvious choices for AustralianSuper to consider in Asia Pacific, but the super fund currently lacks the expertise and prefers to stick to the US and Europe.
CDPQ's Ivanhoe Cambridge hires ex-GIC real estate expert; NZ Super adds board member; Future Fund appoints chief people officer; BlackRock real estate CIO joins Singapore's Capitaland; AMP Capital hires MD for energy; Northern Trust AM names new CIO; T Rowe Price hires AU and NZ institutional head; Nuveen hires Southeast Asia institutional head; Citi names sustainability head in Singapore; and more
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains