Keppel Private Credit Fund Gets $125M Commitment From Beijing’s AIIB

Keppel’s third private credit fund has secured a commitment of up to $125 million from Beijing-based Asian Infrastructure Investment Bank, with the contribution from the development institution potentially boosting the size of the vehicle to over $561 million.

AIIB has committed $75 million to Keppel Private Credit Fund III, along with a co-investment sleeve of up to $50 million, the Temasek-backed Singaporean asset manager announced Tuesday.

This is AIIB’s first investment under a strategic partnership agreement the two groups signed in June 2025, which aims to create up to $1.5 billion of sustainable infrastructure across Asia Pacific, focusing on projects developed by Keppel and backed by its private funds.

“Rapid urbanisation and digital transformation are reshaping the Asia Pacific region, driving infrastructure needs in excess of US$1.7 trillion annually through 2030,” said Christina Tan, CEO of fund management and chief investment officer at Keppel. “Building on our collaboration with AIIB, we aim to help narrow the infrastructure gap in Asia Pacific while continuing to deliver attractive risk-adjusted returns to our investors.”

Infrastructure Focus

Keppel’s private credit mandate aims to provide loans to companies across sectors including green energy, transport, telecom, logistics, and social infrastructure. The vehicle is the third in Keppel’s private credit fund series, with AIIB having also backed the Fund II, which achieved a $700 million final closing in 2022.

Fund III, which has a target fund size of $1 billion, reached a $300 million first close in October 2024, with Keppel committing $100 million to the vehicle. To date, the fund has deployed $260 million in core infrastructure, renewable energy, data centre and social infrastructure projects in the region. 

“Building on our strong and established strategic partnership, AIIB’s investment in KPCF III underscores our continued commitment to working with Keppel in advancing Asia-Pacific region’s transition towards a more sustainable and low-carbon future,” said Kim-See Lim, chief investment officer for the public sector in Southeast Asia, the Pacific, and South Asia at the AIIB, who also serves as CIO for the bank’s global fund clients.

Keppel’s private credit fund series has deployed over $1 billion across 34 investments since 2016. More than half of these investments have been fully exited, delivering an average return profile in the low- to mid-teens, the asset manager said.

Private Credit Enthusiasm

Keppel has secured this latest capital commitment for its private credit vehicle after fund management giant KKR last month announced that it had raised $2.5 billion in cash for Asia Pacific private credit strategies. 

The committed capital includes $1.8 billion for KKR’s Asia Credit Opportunities Fund II and $700 million raised for separately managed accounts, the Manhattan-based firm said. ACOF II is billed as the largest pan-regional performing private credit fund in Asia Pacific and comes after KKR had closed on $1.1 billion for the inaugural vehicle, in the series in 2022.