New York-based credit fund manager Muzinich & Co has partnered with Hong Kong-based alternative investment firm Orion3 Group to launch an infrastructure and real assets private debt strategy.
The strategy will focus on providing debt financing and capital solutions for middle-market infrastructure and real asset companies.
A key theme will be to support businesses and projects on energy and climate transition towards net zero.
Muzinich and Orion3 will focus initially on opportunities in Australia, Singapore, South Korea, Japan, Hong Kong, the UK and Canada, while having the ability to invest opportunistically in Southeast Asia, the Middle East and EU.
The strategy will combine Muzinich’s private debt expertise with Orion3 and CK Asset Holdings’ capabilities in operating infrastructure and real assets “to provide a compelling private debt proposition”, the partners said.
CKA, a global conglomerate with capabilities across infrastructure and real estate, is a shareholder in Orion3.
Justin Muzinich, CEO of Muzinich, said: “We are committed to bringing our clients a breadth of high-quality credit strategies across public and private markets. Expanding our private debt offering into infrastructure and real assets will enable clients to participate in the much-needed investment in sustainable infrastructure, while also providing diversification and a potential illiquidity premium over other asset classes.”
Andrew Tan, Asia-Pacific CEO and head of Asia-Pacific private debt at Muzinich, said: “Globally, we are at an inflection point, where significant capital must be deployed to support much needed infrastructure development in critical areas such as renewable energy, utilities and energy transportation, telecoms, digital infrastructure and real estate. Finance from credit investors has a major role to play in this transition.
“Our partnership with Orion3, supported by CKA, leverages deep expertise and a proven track record in private credit and real assets to offer investors a powerful opportunity to access and support the next phase of infrastructure development.”
Rowena Chu and Harry Chang, co-founders of Orion3 Group, added: “We are excited for this opportunity to partner with Muzinich, one of the leading global credit managers. Real asset markets globally are primed for alternative capital solutions providers to bridge the funding gaps from the traditional banking system. Our unique partnership will offer investors a differentiated value proposition to the growing capital demand in the region.”
The strategy has raised in excess of US$120m (€108m) of seed capital and is targeting a size of between US$500m and US$1bn.
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