Singapore-based SeaTown Holdings International, an Asia-focused alternative investment firm and wholly-owned subsidiary of Temasek’s asset management group Seviora Holdings, has announced the final close of the SeaTown Private Credit Fund II (PCF II) with over US$1.3 billion in capital commitments.

The total commitment size of the second fund surpasses the US$1.2 billion secured for SeaTown Private Credit Fund I (PCF I), further adding to the firm’s growth momentum for its private credit strategy.

Beyond the company’s existing investors, PCF II saw interest from a diverse group of new limited partners, including insurance companies, endowments and family offices. This comes on the back of a concerted effort to build more long-term relationships with international investors, the company says, as it continues to grow and diversify its investor base. Notably, the fund secured commitment from a leading Middle Eastern institutional investor.

PCF II, for which Clifford Chance served as the main fund counsel, adopts the same disciplined and hands-on approach, the company notes, as its predecessor. The fund aims to serve as an ideal building block to multi-asset portfolios seeking income, capital preservation and diversification.

The closed-ended vehicle will deploy capital on a sector agnostic basis and target an attractive mid-teens net return and double-digit distribution yield for investors over its fund life.

Following the successful deployment of PCF I, the firm launched PCF II at the end of 2022 to capitalize on a deepening pipeline of attractive lending opportunities across the Asia-Pacific region.

With the final close of PCF II, the company’s private credit strategy now oversees more than US$2.5 billion in assets under management across both funds.