IFS Asset Management (IFSAM), part of the PhillipCapital Group, has unveiled its second private credit fund aimed at bolstering small and medium enterprises (SMEs) in Singapore and the wider region. The fund, anchored by IFS Capital Limited, focuses on senior secured lending backed by real estate, offering accredited and institutional investors access to stable income and capital preservation.
The initiative seeks to address the persistent funding gap faced by creditworthy SMEs that are often overlooked by traditional financial institutions. Charis Liau, Chief Investment Officer of IFSAM, noted, “Private credit has traditionally been an opaque and difficult-to-access asset class. We’re now seeing it evolve from niche to a core component in diversified portfolios.”
The Asia-Pacific private credit market remains significantly underpenetrated, presenting strong growth potential. Non-bank lending constitutes less than 15% of Asia’s $58 trillion credit market, compared to over 60% in the US. Moreover, the SME sector, which makes up 98% of businesses in Asia, continues to grapple with a $2.5 trillion financing gap.
Randy Sim, Group CEO of IFS Capital Limited, emphasised the fund’s mission to mobilise private capital for SME growth and resilience, stating, “The fund advances this mission by mobilising new sources of private capital to support the growth and resilience of SME businesses, not just in good times, but throughout business cycles.”
Globally, private credit is gaining traction, with assets under management projected to reach $2.6 trillion by 2029. In Singapore, the demand for SME financing remains robust, with private credit strategies offering attractive risk-adjusted returns and portfolio diversification.
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