IFS Capital launches private credit fund

Singapore two-dollar bills

IFS Capital’s subsidiary IFS Asset Management has launched its first private credit fund through a private offering of shares of IFSAM VCC, the Singapore-listed company said in a filing to SGX.

“The fund seeks to ensure preservation of capital through prudent lending on fully secured basis to small and medium enterprises in Singapore and to generate a strong sustainable and predictable stream of income from interest earned on term loans,” IFS Capital said.

IFS Capital said it plans to invest S$9 million in the fund.

In addition, Lim Hua Min, who is the chairman and non-executive director of IFS Capital as well as the executive chairman of the PhillipCapital Group of companies, plans to invest S$5 million in the fund via an investment vehicle, the filing said.

The investment by Lim, who is also a deemed controlling shareholder of IFS, constitutes an interested person transaction, the filing said.

“Lim’s investment in the fund is undertaken on an arm’s length basis and on normal commercial terms (including the fees) not more favourable than that offered to other investors,” IFS Capital said.

No other directors have any interest, direct or indirect, in the fund, the filing said.

IFS Capital provides commercial finance services such as factoring, hire-purchase/leasing, loans, government-assisted programs and trade/export finance, to small and medium sized enterprises (SMEs) regionally, according to its website.