2024-12-18 01:54:23 :
(Bloomberg) — Singapore-based asset manager January Capital Pte Ltd. raised more than $85 million in the first round of investor commitments for its growth credit fund, the company said in a statement.
The fund will lend to private equity-backed technology companies in the Asia-Pacific region as it sees a growing gap in their funding needs.
Growth-stage companies have a hard time getting credit because they’re either too big for lenders who provide capital to unprofitable tech companies, or they’re too big for those, co-founder Jason Edwards said in an interview in January. Too small for a lender offering more than $50 million. “There’s a huge gap in the middle and that’s really the sweet spot.”
The Capital Growth Credit Fund in January offered loans of $5 million to $20 million to technology companies seeking capital to expand into new markets, develop product lines or make acquisitions.
Edwards said the investment firm charges an interest rate of 12% to 16%, plus an upfront fee from the borrower. The loans also include warrants that allow January Capital to be exercised after the owner exits the business.
The $1.6 trillion private credit market is expanding beyond traditional direct lending into areas such as trade finance, energy transition and asset-backed finance as managers seek new ways to operate capital.
January Capital’s fund has received $20 million from the U.S. International Development Finance Corporation and a similar amount from a European development finance institution, which Edwards declined to name.
Other investors include wealth managers, family offices and endowments. The company plans to raise a total of up to $150 million in funding, which is ultimately scheduled to be completed in 2025.
More stories like this can be found at Bloomberg.com
Follow us On Social Media   Twitter/X
