Keppel Corporation Limited (Keppel) has entered into a sales and purchase agreement to acquire the remaining 50% interest in Pierfront Capital Fund Management Pte. Ltd. (Pierfront Capital) from Clifford Capital Holdings Pte Ltd (CCH). With the completion of the acquisition, Keppel now holds 100% interest in Pierfront Capital.
Pierfront Capital offers bespoke private credit financing solutions in real asset sectors. It focuses on corporate lending to operating companies with defensive infrastructure-like business models, across real asset sectors in Asia Pacific. These include renewables and other core infrastructure, such as energy, transportation, telecommunications, along with social infrastructure and logistics.
Ms Christina Tan, CEO of Fund Management and Chief Investment Officer of Keppel Corporation, said, “We believe that the private credit asset class holds promising long term growth potential especially in today’s volatile economic landscape and tighter credit markets. We are enthusiastic about opportunities in the Asia-Pacific region, where we see a growing number of companies seeking specialised intermediate capital solutions.”
The Pierfront Capital platform was established in 2015 by Clifford Capital and successfully deployed its first private credit fund which created a strong track record. This led to the establishment of the CCH-Keppel partnership in 2020 as well as their joint sponsorship of the second private credit fund, Keppel-Pierfront Private Credit Fund, LP (KPPCF). KPPCF achieved its final close in 2022, and the top-tier investors KPPCF attracted include leading global institutional investors such as the Alberta Investment Management Corporation on behalf of certain of its clients, the Asian Infrastructure Investment Bank, GCM Grosvenor on behalf of a separately managed account, as well as Manulife. The fund has fully deployed its committed capital across 16 transactions which are delivering attractive returns on a risk-adjusted basis.
Ms Tan added, “We believe that the growing need for alternative lending solutions, combined with Keppel’s deep networks and extensive operating experience within the real asset industry, will strategically position Pierfront’s existing and upcoming credit funds to seize opportunities in Asian private debt markets. This strategy will enable us to offer investors attractive risk-adjusted returns with downside protection.”
Mr Rajeev Kannan, outgoing Chairman of Pierfront Capital and Non-executive Director of CCH, said, “I would like to thank Keppel, CCH and the Pierfront Capital team for all their support and effort in developing the Pierfront Capital platform. CCH remains a co-sponsor of KPPCF with Keppel. As CCH turns its attention to other strategic initiatives, we look forward to continuing our broad and multi-faceted relationship with Keppel and I wish Pierfront Capital and Keppel the very best for the future.”
The abovementioned transaction is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Corporation for the current financial year.
Keppel Corporation Limited (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity.
Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts, and has a total portfolio with more than $65 billion of assets under management.