27 May 2021

A group of former Credit Suisse Group AG staff, led by Australian investment banker John Wylie, is seeking to raise cash for its second credit fund to invest in the Asia-Pacific region.

Tanarra Credit Partners, the fund’s manager, is targeting to raise A$500 million ($389 million) and has secured commitments of A$250 million from existing investors, according to Peter Szekely, a managing partner.

The fund will focus on sub-investment grade loans in Australia and New Zealand, and some higher yielding investments across Asia-Pacific. Demand for private credit is growing as investors seek a premium over the rich valuations in the public markets.

Private credit, which bypasses traditional lending channels, is still nascent in Asia. Firms including private equity giant KKR & Co. and Bain Capital are expanding their private credit business in Asia as banks turn more cautious in dolling out loans amid surging defaults.

Szekely, a former Credit Suisse banker based in Hong Kong, leads the fund together with Graham Lees, based in Sydney, and with Michael Tierney as senior adviser.

The fund targets net returns ranging from 5% to 10% over bank bill swap bid rates, depending on investors’ risk profiles, according to Lees.

Tierney and Szekely set up the credit business in 2017 with Wylie, who ran Credit Suisse First Boston in Australia in the 1990s.

Tanarra Credit Partners is part of Tanarra, an alternative asset manager with A$1.7 billion under management.

 

By Denise Wee (Bloomberg)

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