Danantara Bets $1 Billion on Private Credit With Partners Group
(Bloomberg) — Indonesian sovereign wealth fund Danantara has given a $1 billion private credit mandate to Swiss asset manager Partners Group, according to people familiar with the matter, one of its largest investments as it taps the lucrative global private markets.
Danantara gave Partners Group $600 million to invest in direct lending opportunities and another $400 million as a discretionary tranche that will be managed by Partners as well as co-investment capital, said the people who asked not to be identified discussing private matters.
Danantara confirmed its investment into Partners’ private credit business but declined to comment on the amount. “Investment in Partners Group will be for direct lending opportunities across Asia, especially Indonesia,” Chief Investment Officer Pandu Sjahrir said in response to a Bloomberg query.
“We foresee the investment to yield good returns and allow knowledge transfers that will eventually benefit Indonesians,” Sjahrir said. The move is part of the wealth fund’s mandate to invest in Indonesia and internationally, he said, adding that the capital will eventually be returned to the country.
A representative for Partners Group declined to comment.
Its investment into Partners is the strongest sign yet that the 18-month old sovereign wealth fund, one of Indonesian President Prabowo Subianto’s flagship projects, is broadening its push to boost capital as it moves in on the $1.8 trillion global private credit industry. Last year, Danantara hired former investment professionals from Singapore’s GIC Pte. to lead its global private market coverage.
Danantara oversees hundreds of state-owned enterprises and controls assets that officials value at roughly $900 billion. The company, which in June raised $1.5 billion from its first international bond sale, has been investing in assets outside of Indonesia. Earlier this month, it agreed to invest $2.5 billion into a joint venture company for the Australia and New Zealand operations of JBS NV, the world’s largest meat processor.
Danantara is the latest sovereign wealth fund which has allocated money to the rapidly growing private markets. Indonesia Investment Authority has also expressed interest in co-funding deals with regional and global private credit managers, as well as other sovereign funds.
Singapore’s Temasek Holdings Pte. set up a private credit platform in 2024 with an initial portfolio of about S$10 billion ($7.9 billion), comprising direct investments and credit funds. This year, Abu Dhabi’s Mubadala Investment Co. said it remains confident about its private credit investments, even as the asset class faces increased scrutiny amid lower returns and fears over credit quality.
Partners announced the $1 billion mandate earlier this month but didn’t name the institutional investor. It said then that the mandate will invest in senior and junior direct lending opportunities in Asia-Pacific and will be an open-ended evergreen structure.
The firm, which manages more than $186 billion in assets, faced rising client withdrawals earlier this year. Partners Group Chairman Steffen Meister said in June that the company is considering paring back the overall sizes of its evergreen funds for wealthy investors.
Partners has said it’s seeking further investment opportunities in Asia, as its clients look to diversify away from the US. It will exit its private credit investment in bubble-tea brand Gong cha after Bain Capital bought the Taiwanese firm from TA Associates this month, Bloomberg reported earlier.
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