According to Yahoo News, RRJ Capital, a private equity firm founded by former Goldman Sachs banker Richard Ong, is planning to raise up to $2 billion for a new fund focusing on private credit in Asia. The Singapore-based firm has already received initial interest from North American pension funds totaling $500 million ahead of the fund's launch in January. RRJ aims to raise at least $1.25 billion and may raise an additional $750 million, capping the fund size at $2 billion, according to a fund document seen by Bloomberg News.
RRJ is joining other large asset managers, such as BlackRock Inc., in expanding into the rapidly growing $1.6 trillion private credit markets. Despite the surge in interest rates affecting investor appetite for risky investments, fundraising in private credit has remained strong due to the floating rates typically associated with these loans, allowing lenders to benefit from increases in borrowing costs. RRJ's new fund will primarily provide private funding to companies and entrepreneurs in Southeast Asia, India, and Australia. It can also serve as a bridge to initial public offerings or strategic sales for stronger companies with below-investment-grade ratings.