Muzinich to launch pan-Asian private debt strategy – exclusive

The initial fundraising target is in the range of $300m to $500m and will target mid-market companies.

New York-based fund manager Muzinich & Co is to launch a new Asia-Pacific strategy in the next few quarters, Private Debt Investor has learnt. The initial fundraising target size for the strategy is understood to be in the range of $300 million to $500 million.

It will target investments across the corporate credit structure and focus on mid-market companies with EBITDA between $2.5 million to $50 million. It will include direct lending and investing in special opportunities such as mispriced credits in dislocated markets or stressed corporate situations.

The team will aim to generate a gross internal rate of return of 12 to 13 percent, in US dollar terms, at the portfolio level. Andrew Tan, a Singapore-based managing director and head of Asia-Pacific private debt, will be lead portfolio manager. Alexis Ng, a Singapore-based country head and managing director for Asia-Pacific, will be responsible for fundraising for the new strategy.

Muzinich & Co focuses on corporate credit investments including investment grade and high yield bonds, alternative credit, absolute return strategies, syndicated loans, private debt and corporate-plus strategies. It was founded by George Muzinich in 1988.

Although public debt strategies form more than 90 percent of the firm’s assets under management, Muzinich’s private debt investment platform has been active in Europe through eight offices in Zurich, Paris, Milan, Madrid, Manchester, Dublin, London, and Frankfurt.

As PDI reported in July, Muzinich’s private debt platform had $1.9 billion in committed capital and more than $1.1 billion in invested capital as of 30 June.

Elsewhere, other foreign entities, such as AllianzGI and M&G Investments, have also decided to enter Asia-Pacific private credit. Both firms have Singapore offices housing private debt investment and origination professionals.

Ares Management, Credit Suisse and Fiera Capital are among entities that have acquired or formed partnerships with existing investment and asset management firms in the Asia-Pacific region.

Update 13/08/2020: The original article based on the Muzinich & Co’s UN PRI reporting framework 2020 was that although public debt strategies form more than 90 percent of the firm’s assets under management, Muzinich’s private debt investment platform has been active in Europe through six offices in Zurich, Paris, Milan, Madrid, Manchester, and Dublin.