CapitaLand Investment expands private credit fund business to South Korea with the close of maiden KRW 180 billion fund
- Editor
- Feb 19
- 1 min read
Whats Happening:
CapitaLand Investment Limited (CLI) has closed its first South Korea private credit fund, CapitaLand Korea Investment No. 1 Private Equity Fund (PEF), with a total equity commitment of KRW 180 billion. This move increases CLI's funds under management in South Korea to S$3.1 billion. The fund will invest in construction, asset-backed or mortgage loans for various asset classes in South Korean gateway cities.
Key Moves:
CLI closes first South Korea private credit fund with KRW 180 billion equity commitment
Forms strategic partnership with Korea Investment & Securities as co-general partners
Deploys KRW 40 billion loan for data centre development in Guro, Seoul
By The Numbers:
CLI's funds under management in South Korea increase to S$3.1 billion
CLI holds an 11% sponsor stake in the new fund
The Guro data centre will have 30 megawatts of power secured
Key Quotes:
"The strong institutional participation in PEF is testament to the network and trust CLI has built over more than 20 years of operating in the country," said Matthew Sohn, CLI's Chief Executive Officer for Korea.
"We see strong potential to scale our private credit portfolio in South Korea and remain committed to delivering long-term value for our capital partners," added Mr Sohn.
Bottom Line:
CLI's expansion into South Korea's private credit market aligns with its strategy to capitalize on the 'Disruption' theme. As traditional lenders become more conservative, CLI sees opportunities to fill the funding gap. This move, along with recent acquisitions and fund closures, demonstrates CLI's commitment to growing its private credit business and expanding its presence in key markets.
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