OCP Asia is seeking to raise an additional $250 million to $300 million by the end of this year for its Pan-Asia open-ended credit fund, PDI has learnt.
The fund, OCP Asia's debut vehicle, was first launched in September 2013 and has raised approximately $850 million to date. It has been closed to investors during the last quarter.
The fund targets hurdle rates between 20 to 25 percent per annum. Its typical ticket size is around $40 million to $75 million. It provides all tranches of loans depending on the corporates and their situations.
“We believe a long-term structural mismatch between corporate credit demand and supply has created a highly attractive market opportunity in Asia-Pacific. High barriers to entry favour incumbents in the region who can offer partners flexible and timely financing based on specialised local-market knowledge gained from extensive experience,” Dan Simmons, partner of OCP Asia explained.
“This is a Pan-Asia fund. We are sector and market agnostic but we think the service and consumer industry in Australia and ASEAN is providing a very favourable opportunity for us now.”
The majority of the fund’s LPs are from the US with a minority coming from APAC and Europe.
Consultants on the ground are employed by OCP to source deals in addition to the existing relationships with borrowers. Former Carlyle senior executive Matthew Hunter was one of the consultants hired to oversee the financing opportunities in Australia.
OCP is a credit-oriented investment fund manager providing customized financial solutions to Asia-Pacific SMEs. It currently has assets under management of $1.1 billion and has managed more than $4 billion of secured lending around the region over the last 10 years.