Tor raises more LP capital for short-term private debt fund

The credit manager is being supported by LP re-ups as it returns to fundraising mode despite challenging conditions amid the pandemic.

Tor Investment Management, an alternative credit manager based in Hong Kong and Singapore, has increased its investible capital, focusing on pan-Asia private debt investments. The firm’s overall AUM exceeded $2 billion as of end-June. It manages one open-ended fund and three closed-ended funds and invests across public and private credit.

Tor makes short-term bilateral loans with contractual maturity ranging from one to three years. It often looks to invest in bridge financings and close-to-completion real estate deals, according to Patrik Edsparr, chief investment officer and co-founder of Tor.

He added that the investment team prefers senior secured debt positions for non-sponsored-lending transactions. The firm also looks to acquire bank loans and syndicated loans at face value, or at a discount. Tor has deployed $3.1 billion to 88 private credit transactions since inception.

Offering his view on the investment environment since the covid-19 outbreak, Edsparr told Private Debt Investor: “Those without a strong origination platform and a reliance on others for their source of dealflow will have a hard time building up their portfolios.”

The firm has garnered about $240 million for its latest fund, Tor Asia Credit Opportunity Fund II, according to a statement provided by the firm on 30 June. As PDI reported, the second fund has a final target of $750 million. The firm disclosed that substantially all existing LPs in the first fund committed to the second fund. TACOF II looks to invest in private loans and distressed situations across the region.

A Securities and Exchange Commission filing on 22 April showed details of Tor’s planned fundraising this year. The previous fund, Tor Asia Credit Opportunity Fund, was launched in 2017, according to another SEC filing in August 2018.

It is understood that the first fund had a two-year investment period with a five-year fund life. TACOF I held a first close in 2018 and deployed over $400 million, including invested capital that was paid back either at maturity or as an early repayment.

As PDI reported in October 2019, Tor’s investment team prefers areas in the credit market where there are barriers to entry, and where the team can originate, source and structure short-term loans. Tor’s investor base includes endowments, family offices, foundations, outsourced-CIO firms, pension funds and sovereign wealth funds based in North America, Europe and Asia.

Update 20/07/2020: The firm has garnered ‘about’ $240 million, not ‘over’ $240 million, for its latest fund, Tor Asia Credit Opportunity Fund II (TACOF II). The firm disclosed that ‘substantially all’, not ‘all’ existing LPs in the first fund committed to the second fund.