SeaTown Holdings International has secured over US$612 million in the first close of its third private credit fund.

The Singapore-based asset manager, part of Temasek Holdings, is targeting lending deals with companies across Asia Pacific.

Investors from the Middle East, Japan, Taiwan, and Singapore joined the initial round.

The fund will focus on performing loans in Asian markets where there is an underserved need for flexible capital.

SeaTown’s previous private credit funds raised US$1.3 billion and US$1.2 billion, respectively.

The company has provided loans to regional firms such as Vincom Retail and Vinfast Auto, both units of Vietnamese conglomerate Vingroup.

SeaTown plans to complete fundraising for the third fund in the second half of 2026.

Private credit fundraising globally is slowing, with US$70 billion raised through July 22, 2025, according to JP Morgan Chase data.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Asian private credit attracts capital despite global fundraising challenges

SeaTown’s successful $612 million first close contrasts sharply with broader private credit fundraising trends, which are on track for the weakest year since 2018 with just $70 billion raised globally through July1.

This regional strength reflects Asia-Pacific’s robust economic fundamentals, with India achieving 6.5% GDP growth and Southeast Asia maintaining 4.7% growth, both requiring substantial capital for expansion in sectors like renewable energy and data centers2.

The fundraising environment across Asia-Pacific private equity fell to a 10-year low of $74 billion in 2024, down 22% year-over-year, making SeaTown’s ability to attract new and returning investors from the Middle East, Japan, Taiwan, and Singapore particularly notable3.

Despite these broader headwinds, private credit in Asia remains appealing to investors seeking higher yields, with the global private credit market growing at a 14.5% annualized rate compared to just 5.5% for traditional corporate borrowing4.

2️⃣ Temasek’s private credit strategy capitalizes on underserved Asian markets