Asian mid-market performing credit platform BPEA Credit has hit the first close of its Select Short Term Income Fund-I (SSTIF-I), with a target fund size of Rs 750 crore.
While the fund declined to disclose the amount raised in the first close, a report by The Economic Times has pegged it at around Rs 375 crore.
The fund, which also has a greenshoe option of Rs 750 crore, expects to hit its final close in Q3 2024, BPEA Credit told DealStreetAsia in an emailed response.
The SSTIF-I fund was established in direct response to market feedback, recognising the need for a stable, shorter-term investment vehicle with regular income distribution.
It is a sector-agnostic fund and will invest in high-growth, established companies with strong growth prospects and looking for solution capital. The fund is expected to make 10-12 investments.
“We are proud to provide a vehicle that offers attractive stable returns with regular cash coupons, addressing the investor demand for shorter-term, fixed-income investment options. This fund is a natural extension of our Solution Capital approach, designed to offer customised credit solutions to established corporates, ensuring both growth and financial stability,” Kanchan Jain, Head of BPEA Credit Group, said in a statement.
Earlier in 2022, the Hong Kong-headquartered entity made headlines when its PE arm was merged with Swedish investment behemoth EQT in a deal worth 6.8 billion euros ($7.5 billion).
BPEA’s credit arm has since operated as a separate entity, even as Salata, who currently serves as the chairperson of EQT Asia and head of Private Capital Asia, continues to be a passive minority investor.
It is now in talks to be taken over by Wall Street’s marquee investment firm Apollo Global Management. It is also currently understood to be in the process of launching an India-Southeast Asia fund with a targeted size of $750 million.