IFM Investors opens Singapore office to grow Asia private credit push

IFM Investors, an Australian pension giant, is establishing a Singapore office to bolster its presence in Asian private credit. This marks the company's fourth office in the Asia Pacific region, following Hong Kong, Seoul, and Tokyo. According to IFM, the Singapore office will bolster its capabilities in diverse credit, with a focus on local origination and execution.

The firm, which manages A$291.6 billion ($204.8 billion) in global pension capital, plans to deploy up to half of a $1 billion private credit fund across other Asian markets. Hiran Wanigasekera, co-head of APAC diversified credit at IFM, revealed that roughly 25-35% of the fund will be allocated to Southeast and South Asia. This diversification is expected to expose IFM to markets and industries not typically found in developed markets, such as manufacturing.

IFM's expansion into Asian private credit is supported by Export Finance Australia, a government agency that invested $175 million into the firm. The move follows similar investments by global investors such as Partners Group and KKR. As US and European private credit sectors face reputational challenges, Asia has emerged as a relatively untapped asset class.

With stringent banking regulations, high-growth businesses often struggle to access debt-raising opportunities, making Asian private credit an attractive option for investors seeking to diversify their portfolios and capitalize on growth potential.