Keppel Capital’s wholly owned subsidiary KC Management One has entered a deal to acquire 50 percent of Pierfront Capital Fund Management from Pierfront Capital Mezzanine Fund (PCMF) for US$7.8 million, or around S$10.8 million, in cash, Keppel said Wednesday.
Under the deal, Pierfront Capital will act as the investment manager of Keppel-Pierfront Private Credit Funds, a series of funds to be established to provide credit to corporates or projects in the real asset sectors, Keppel said in a filing to SGX.
“The strategic acquisition of a stake in Pierfront Capital allows Keppel Capital to manage mezzanine loans for private debt, while extending our fund management capabilities beyond the equity layer of the capital stack,” Christina Tan, CEO of Keppel Capital, said in the statement.
“The private mezzanine debt for real estate and infrastructure projects is a growing asset class, and we are confident that Keppel-Pierfront Private Credit Funds will be well-positioned to capture investment opportunities and create value for investors and the
PCMF, a Singapore-based alternative credit investment company, is 90.91 percent-owned by Temasek Holdings, with Sumitomo Mitsui Banking Corp. holding the remainder, the statement said.