CapitaLand Targets $500 Million for Third Asian Credit Fund

CapitaLand Investment, a Temasek-backed asset manager, has set its sights on raising US$500 million for its third Asia-Pacific credit fund, according to sources familiar with the matter. The latest fundraising effort follows the successful US$320 million raised for the second vehicle, ACP II, which boosted CapitaLand's funds under management to about US$600 million.

The third fund, APC III, will prioritize senior secured asset-backed investments and aim to close by the end of 2026, focusing on existing investors. The initiative arrives amid growing scrutiny of private credit in Asia, with concerns over the safety of loans backed by collateralized assets, particularly in Australia's A$200 billion private credit market, where real estate comprises up to 60% of lending.

CapitaLand's first credit program, ACP I, raised A$265 million, financing two major mixed-use developments in Melbourne and Adelaide. The second funding pool was allocated to mortgage loans for logistics, office, and residential assets in Sydney and Seoul. CapitaLand has deployed over S$10 billion (US$7.9 billion) across Asia using its real estate credit platform, acquired from Wingate Group in 2025.

Recently, the firm has undergone personnel changes, including the disbanding of its special opportunities team and the appointment of Jeff French as chief operating officer of its alternatives business.