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Kadita Partners Raises Over $100 Million for Inaugural Fund, Aiming for $250 Million Target

Kadita Partners raises over $100 million for its first fund, targeting $250 million amidst a booming $1.7 trillion private credit market.

By Max Weldon

5/15, 02:44 EDT

Key Takeaway

  • Kadita Partners raises over $100 million for its first fund, targeting up to $250 million, focusing on real assets and energy transition.
  • The firm's leadership brings extensive private credit market experience, indicating strong expertise in a sector valued at $1.7 trillion globally.
  • The rise of private credit highlights its competitive edge over traditional lending, with significant transactions like Carlyle Group's $400 million investment in Big Bus Tours.

Maiden Fund Launch

Kadita Partners, a private credit firm based in Singapore, has successfully raised over $100 million for the first close of its inaugural investment fund. The firm, led by managing partners Xavier De Nazelle and Matthieu Simoncini, completed this initial fundraising stage in early May. Kadita Partners has set a target to raise up to $250 million for the fund. The firm specializes in sectors including real assets and infrastructure, energy security and energy transition, and resources management. Despite inquiries, De Nazelle declined to comment on the fundraising. A filing with the US Securities and Exchange Commission dated May 2 lists both De Nazelle and Simoncini as directors of the Singapore-registered Kadita Partners Pte, which promotes Kadita Credit Solutions 1 LP, a pooled investment fund.

Background of Leadership

Before their current roles at Kadita Partners, both De Nazelle and Simoncini held significant positions in the private credit sector. De Nazelle served as the head of private credit at the trade financing firm EFA Group, a detail confirmed by his LinkedIn profile. Similarly, Simoncini was a senior investment associate for private credit at EFA Group. Their extensive experience in private credit underscores the leadership's expertise in navigating and contributing to the rapidly growing private credit market.

Private Credit Market Growth

The global private-credit market, valued at approximately $1.7 trillion, is increasingly becoming a formidable competitor to traditional lending. This market's appeal lies in its ability to offer higher, floating rates of return. For instance, Tor Investment Management, a Hong Kong-based alternative credit manager, recently raised $310 million for its third Asia opportunistic private credit fund. Furthermore, Carlyle Group Inc. has committed over $400 million in private credit to Big Bus Tours to support its global expansion, highlighting the private credit market's rapid growth and its role in facilitating significant financial transactions.

Alternative Credit's Appeal

The growing appeal of alternative credit platforms among private equity firms is evident in their search for flexible, tailored financing solutions outside of traditional bank loans or public markets. Carlyle Global Credit, managing around $186 billion in assets, exemplifies the scale and influence of these alternative credit platforms. This trend is reshaping the financing landscape, offering new avenues for companies to secure funding while providing private equity firms with innovative platforms to support the growth and expansion of their portfolio companies.

Management Quotes

  • Xavier De Nazelle, Managing Partner at Kadita Partners:

    "Declined to comment."