Keppel acquires remaining 50% stake in Pierfront Capital Fund Management

Keppel Corporation has entered into a sales and purchase agreement (SPA) to acquire the remaining 50% stake it does not own in Pierfront Capital Fund Management Pte. Ltd. on Oct 2. After the successful deployment of its first private credit fund and the joint sponsorship of the second private credit fund, Keppel-Pierfront Private Credit Fund, LP (KPPCF), by both parties, the stake was acquired from Clifford Capital Holdings.

Pierfront Capital is committed to providing bespoke private credit financing solutions in real asset sectors. Specifically, it focuses on corporate lending to operating companies with defensive infrastructure-like business models across Asia Pacific, such as energy, transportation, telecommunications, along with social infrastructure and logistics. In 2022, the platform successfully achieved its final close, and at which time, KPPCF was topped-up with investments from some of the world’s top-tier institutional investors, including the Alberta Investment Management Corporation on behalf of certain of its clients, the Asian Infrastructure Investment Bank, GCM Grosvenor on behalf of a separately managed account, and Manulife.

Christina Tan, CEO of fund management and chief investment officer of Keppel, believes that the private credit asset class holds promising long-term growth potential, especially in today’s volatile economic landscape and tighter credit markets. “We are enthusiastic about opportunities in the Asia-Pacific region, where we see a growing number of companies seeking specialised intermediate capital solutions,” she says.

“We believe that the growing need for alternative lending solutions, combined with Keppel’s deep networks and extensive operating experience within the real asset industry, will strategically position Pierfront’s existing and upcoming credit funds to seize opportunities in Asian private debt markets. This strategy will enable us to offer investors attractive risk-adjusted returns with downside protection,” Tan adds.

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Rajeev Kannan, outgoing chairman of Pierfront Capital and non-executive director of Clifford Capital, thanks Keppel, Clifford Capital, and the Pierfront Capital team for their support in developing the platform. “Clifford Capital remains a co-sponsor of KPPCF with Keppel. As Clifford Capital turns its attention to other strategic initiatives, we look forward to continuing our broad and multi-faceted relationship with Keppel and I wish Pierfront Capital and Keppel the very best for the future,” Kannan says.

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The acquisition of the remaining 50% stake from Clifford Capital Holdings by Keppel Corporation is yet another indication of the strong potential of the private credit asset class, especially in view of the current volatile economic landscape and tighter credit markets in the Asia-Pacific region.

Pierfront Capital, with the help of Keppel, is strategically positioned to seize the opportunities in Asian private debt markets and offer investors attractive, risk-adjusted returns with downside protection. This active partnership between Clifford Capital and Keppel is set to ensure continued success and growth.