UOB Asset Management Launches New Private Debt Fund: UPD-UI
Fund offers diversified asset-based lending solutions with the first public offering set from March 4-13, 2025.
UOB Asset Management (UOBAM) has announced the launch of its new private debt fund, the UPD-UI, aimed at creating investment opportunities in the non-public debt market.
The initial public offering (IPO) for UPD-UI will take place from March 4 to March 13, 2025.
The UPD-UI fund is designed to provide an enhanced yield to investors by focusing on asset-based lending, which involves lending that is secured by tangible assets.
This approach encompasses various asset classes, including residential and commercial real estate, as well as aircraft leases.
Such secured lending is considered safer because the value of the underlying assets typically exceeds the loan amounts extended.
In particular, UOBAM notes that the loan-to-value ratio for the assets backed in this fund is approximately 70%, suggesting a conservative approach to risk management.
In the event of a borrower default, the presence of substantial collateral provides a buffer against losses.
The fund is structured to diversify its lending across different asset types, which is expected to help mitigate volatility and reduce risk exposure.
PIMCO, the global investment management firm collaborating with UOBAM on this initiative, brings extensive expertise in building diversified portfolios, thereby offering potential efficiency in risk management.
PIMCO's specialized data-bank includes historical asset price information, transfer data, and the latest sales prices, facilitating accurate asset valuation and selection for investment.
This comprehensive approach to data utilization is seen as a significant advantage in the fund's management.
Investing in the UPD-UI fund allows access to unique investment opportunities not commonly available in public markets, with a focus on sectors or companies that may exhibit higher growth potential.
The fund's management is handled by experienced professionals at PIMCO, who are recognized leaders in the field of financial asset management.
The UPD-UI fund is particularly positioned to benefit from its strategic approach to private credit in the face of economic uncertainty and geopolitical dynamics.
By adjusting the investments between fixed and floating interest rates, the fund's managers aim to navigate changing market conditions effectively.
Investors are advised to consider the specific characteristics, risks, and terms of return associated with the fund prior to making any investment decisions.
The fund is not recommended for retail investors and is more suitable for those with a higher risk tolerance, reflected in its risk score of 8+.
For further details regarding the UPD-UI fund, interested investors may contact UOB Asset Management (Thailand) at 0-2786-2222.