Granite Asia raises $350 mln for fund backed by Temasek, Khazanah, INA

SINGAPORE, Dec 9 (Reuters) - Granite Asia, a Singapore-based investment firm, said on Tuesday that it had raised more than $350 million in the first close of its Pan-Asia private credit fund, anchored by Southeast Asian state investors Temasek, Khazanah Nasional and the Indonesia Investment Authority (INA).

The strategy, called Libra Hybrid, is targeting $500 million in total commitments and drew capital from global institutions including sovereign wealth funds and Granite Asia's partners, Granite Asia said in a statement.

Singapore state investor Temasek TEM.UL invested through its private credit platform, Aranda Principal Strategies, according to the statement. Khazanah KHAZA.UL is Malaysia's sovereign investor while INA is Indonesia's sovereign wealth fund.

About 30% of the capital has already been deployed across six transactions, Granite Asia added.

Asia's private credit market is projected to grow 46% to $92 billion by 2027, outpacing global averages, despite challenges such as fragmented regulations and currency risk, according to a report by the Alternative Investment Management Association, Simmons & Simmons, EY and Broadridge.

"We're seeing strong demand for private credit from companies undergoing transformative growth — redesigning supply chains, expanding into new markets, or modernising through technology," said Ming Eng, Granite Asia's managing partner who leads the firm's private credit strategy.

Granite Asia, formerly known as GGV Capital Asia, was created after GGV split its Asia and U.S. businesses in 2023 following a review by U.S. authorities over its funding of Chinese technology companies.

Last year, Granite Asia partnered with INA to launch a $1.2 billion investment plan targeting Indonesia's technology sector, and in March it teamed up with Japan's Integral to establish a $100 million joint venture.

The firm manages about $6 billion across venture, growth and credit strategies and has investments in 57 companies with valuations exceeding $1 billion and has facilitated 33 IPOs, according to its statement.

(Reporting by Yantoultra Ngui; Editing by Kate Mayberry)

((Yantoultra.Ngui@thomsonreuters.com;))