CLSA closes Lending Ark joint venture on $226m

The fund will look to exploit an imbalance between consumer credit demand and supply.

CLSA Capital Partners has closed its first secured private debt strategy at $226 million.

The Lending Ark Asia Secured Private Debt Fund is part of a joint venture between Lending Ark Capital and CLSA which will invest in secured private debt opportunities across the Asia-Pacific region. Investments will include privately negotiated three-to-five-year maturity secured private debt financings, senior and mezzanine tranches of asset-backed securities and bank-collateralised loan obligations.

Lending Ark Asia aims to capture opportunities arising from a growing demand for credit from the growing Asian middle class and the shrinking supply of credit available from banks. It said market dislocation created a credit vacuum allowing its team to originate, structure and invest in private secured debt instruments across the region.

Carol Lee Park, managing director of Lending Ark, said: “With more middle class Asians taking on Western-style consumption patterns, Lending Ark Asia’s asset-backed private debt strategy captures a highly scalable opportunity in the fastest growing region in the world.”

The fundraising brings the firms’ secured private debt investment platform to a total of $626 million of investable capital including target allocations from separately managed accounts established in conjunction with the fund. It has currently invested more than 82 percent of capital commitments.

Revolving senior and mezzanine notes have been assigned credit ratings of A and BBB, respectively, by Egan-Jones Ratings Company.