CMBI, a wholly owned subsidiary of China Merchants Bank (CMB), a commercial bank listed on the Shanghai Stock Exchange (600036.SH) and the Hong Kong Stock Exchange (3968.HK); and global alternative asset manager MA Financial Group listed on the Australian Stock Exchange (ASX: MAF) have announced the signing of a general partners agreement to jointly manage the MA CMBI APAC Credit Opportunities Fund (the Fund).
The Fund, structured as a Cayman limited partnership, will provide institutional and ultra-high net worth investors across the globe with unique access to Asia Pacific’s growing private credit market by focussing on senior secured leveraged loans to sponsor backed corporate borrowers in the Asia Pacific region.
CMBI APAC Credit Opportunities Fund GP and MA Investment Management Pty Ltd will be the co-general partners of the Fund, to be managed by CMBI’s asset management entity in Hong Kong and MA Financial’s asset management team in Sydney and Singapore.
The Fund is targeting a size of US$600m of investments (including equity commitments of approximately US$250 million) and an internal rate of return of 9 – 11% (before fees).
Launch of the Fund is at advanced stages with attractive seed investments secured, a deep visible pipeline identified, NAV financing is being arranged from a major global commercial bank and the first LP commitments secured.
Jianjun Huo, CMBI’s Chief Executive Officer, said: “We are very proud to partner with MA Financial to launch this dedicated Asia-Pacific LBO credit opportunities fund. As the Asia-Pacific region continues to drive global economic growth, its private credit market stands out as one of the world’s fastest-growing and most dynamic segments, fueled by structural demand for flexible, non-bank financing.
This strategic collaboration harnesses CMBI’s extensive regional network and execution strength alongside MA Financial’s deep private credit expertise and disciplined approach, enabling us to offer sophisticated, internationally oriented investors resilient, diversified exposure to Asia’s structural growth story—delivering enhanced risk-adjusted returns amid an increasingly complex and volatile global landscape.”
Andrew Martin, MA Financial’s Head of Asset Management said, “We are honoured to be partnering with CMBI – one of the most successful and respected financial institutions in the Asia Pacific. This initiative builds on MA Financial’s long term commitment to Asia and is a strong endorsement of and testament to MA Financial’s proven track record and significant expertise and capabilities in private credit investing.
Mr. Martin said, “Private credit is a maturing asset class across the Asia Pacific region supported by strong growth drivers. A large share of future global economic growth is expected to come from Asia and with that we see multiple demand drivers for private credit, from accelerating GDP growth, rising consumption from an expanding middle class, maturing private equity markets and a widening financing gap for sponsors and companies.”
“For investors, Asia Pacific private credit presents a unique opportunity particularly as a diversifier for portfolios concentrated towards US and European private credit markets. Incorporating Asia Pacific private credit into a blended portfolio can enhance portfolio resilience and improve risk adjusted returns.”
