Orion Capital Asia, a Singapore-based private credit investor, has raised $205 million for the first close of its latest fund, which is dedicated to direct lending opportunities in Asia Pacific.
The firm provides medium-term secured loans to mid-market businesses which have been underserved by traditional banking channels, including both private equity sponsors and local entrepreneurs, according to a statement on Monday.
The investments made from the fund span various sectors for growth capital, acquisition financing, and other corporate initiatives as well as bespoke solutions across multiple regions.
The investments are across diverse industry sectors and used for growth capital, acquisition financing, and other corporate initiatives, and in many cases involve bespoke financing solutions spanning multiple jurisdictions.
“The success of this fundraising is a strong validation of our investment strategy and investment track record and positions Orion well to capture the opportunity set in middle market direct lending in Asia Pacific that has become even more attractive in current market conditions,” said Nitish Agarwal, CEO and CIO of Orion Capital Asia.
Orion Capital Asia has invested over $400 million from each of its first two funds and in aggregate has invested more than $1.5 billion including co-lenders, providing investors access to stable income-generating private credit opportunities in the region. The firm does not invest in distressed assets, the statement said.
The firm in September last year provided a $300-million financing facility to Indonesia’s online travel unicorn Traveloka alongside Indonesia Investment Authority, BlackRock, and Allianz Global Investors.
In August that same year, the credit investor announced a three-year $50-million loan facility to Hong Kong-listed supply-chain technology platform SY Holdings.
Orion Capital has become the latest private credit investment firm to capture the rising opportunities in a high interest rate environment where lending does not come cheap for all sorts of borrowers in Asia. Among other credit managers that are eyeing opportunities in Asia are US-based Muzinich & Co, Hong Kong-based ADM Capital, and Europe’s 21yield.
In 2021, Orion Capital Asia was spun out of Olympus Capital Asia, a private equity firm focused on sectors such as financial services, renewable energy and healthcare, among others.
Canadian pension fund OMERS made an equity investment in Orion Capital in 2020 to help accelerate its growth plan. DealStreetAsia reported the announcement in January 2021. “Our capital commitments to Orion have grown substantially since we made the equity investment into Orion three years ago,” said Ani Deshmukh, Managing Director at OMERS Global Credit.