Muzinich & Co. targets up to $1bn infrastructure private debt strategy with Orion3

The strategy has raised $120m of seed capital and will focus on the climate transition, initially targeting Australia, Singapore, South Korea, Japan, Hong Kong, the UK and Canada.

September 16, 2024

New York-headquartered private credit firm Muzinich & Co. is partnering with Hong Kong-based alternative investment group Orion3 Group to launch an infrastructure and real assets private debt strategy.

The strategy has raised in excess of $120 million of seed capital and is targeting a size of between $500 million and $1 billion, according to a September 16 media release. 

The aim is to provide debt financing and capital solutions for middle-market infrastructure and real asset companies in their energy and climate transition journey as the world moves towards net zero, according to a media release. 

The Organisation for Economic Co-operation Development (OECD) estimates that $6.9 trillion of investment is needed annually to meet development and climate needs globally. In Asia Pacific (Apac), the Asian Development Bank has estimated there is an annual requirement of $1.7 trillion.

The strategy will focus initially on opportunities in Australia, Singapore, South Korea, Japan, Hong Kong, the UK and Canada and also have the ability to invest in deals in Southeast Asia, the Middle East and EU countries. 

Hong Kong-headquartered property developer CK Asset Holdings is a shareholder in Orion3. 

Justin Muzinich, chief executive officer (CEO), Muzinich & Co., said in the statement: “Expanding our private debt offering into infrastructure and real assets will enable clients to participate in the much-needed investment in sustainable infrastructure, while also providing diversification and a potential illiquidity premium over other asset classes.”

Also in the statement, Andrew Tan, Apac CEO and head of Apac private debt, Muzinich & Co., commented: “Globally, we are at an inflection point, where significant capital must be deployed to support much needed infrastructure development in critical areas such as renewable energy, utilities and energy transportation, telecoms, digital infrastructure and real estate.”

Tan continued: “Finance from credit investors has a major role to play in this transition." 

Rowena Chu and Harry Chang, co-founders of Orion3 Group, said: “Real asset markets globally are primed for alternative capital solutions providers to bridge the funding gaps from the traditional banking system." 

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