Keppel acquires remaining 50% stake in Pierfront Capital Fund Management

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Keppel Corporation has acquired a 50% stake in Pierfront Capital Fund Management Pte. Ltd. from Clifford Capital Holdings. As such, Keppel now holds the remaining shares in the company. This transaction was completed on October 2.

Pierfront Capital specialises in providing bespoke private credit financing solutions to corporations within the Asia Pacific region. It does so by investing in sectors such as energy, telecommunications, social infrastructure, logistics, and transportation. This fund was established back in 2015 by Clifford Capital.

To further strengthen their capabilities, both Keppel and Clifford Capital set up the Keppel-Pierfront Private Credit Fund (KPPCF) in 2020. The fund proved successful, and was quickly backed by leading investors including Manulife, the Asian Infrastructure Investment Bank, and the Alberta Investment Management Corporation.

KPPCF hit its final close in 2022.

Christina Tan, CEO of fund management and chief investment officer at Keppel, views the private credit asset class as having great potential, particularly in light of the current tumultuous economic landscape.

“We are enthusiastic about opportunities in the Asia-Pacific region, where we see a growing number of companies seeking specialised intermediate capital solutions. This strategy will enable us to offer investors attractive risk-adjusted returns with downside protection,” Tan said.

Rajeev Kannan, outgoing chairman of Pierfront Capital and non-executive director of Clifford Capital, expressed his gratitude for the support all parties had extended to Pierfront Capital. He also commented on the ongoing relationship between Keppel and Clifford Capital moving forward.

“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,” Kannan said.

On October 2, Keppel Corporation entered into a sales and purchase agreement (SPA) to acquire the remaining 50% stake it did not own in Pierfront Capital Fund Management Pte. Ltd. The fund was established in 2015 by Clifford Capital with the aim of providing bespoke private credit financing solutions.

Both parties saw their joint sponsorship of the second private credit fund, Keppel-Pierfront Private Credit Fund, LP (KPPCF) come to fruition in 2020. Top-tier investors such as the Asian Infrastructure Investment Bank, GCM Grosvenor on behalf of a separately managed account, as well as Manulife, backed the fund.

Christina Tan, CEO of fund management and chief investment officer of Keppel, acknowledged the promising growth potential of private credit assets amidst the current economic climate. She also spoke of Keppel’s extensive experience in the real asset industry, and its ability to seize opportunities in the Asian private debt markets.

Rajeev Kannan, outgoing chairman of Pierfront Capital and non-executive director of Clifford Capital, praised the collective efforts that were put in to develop the Pierfront Capital platform. He also looked to the future of the partnership between Keppel and Clifford Capital.

Together, the two parties are confident that the Pierfront Capital platform will be able to deliver attractive risk-adjusted returns with downside protection for investors.