Latest news with #WestCoast-based
Business Times
6 hours ago
- Business
- Business Times
US investors, Asia's ultra-rich drive growth in Asia-Pacific private credit
[SINGAPORE] A slight uptick in private-credit fundraising in Asia-Pacific (Apac) last year has given market players optimism for a positive 2025, even as investors continue to avoid China. They said deals in India and Australia can fill the gap, while more investors within and outside Apac are allocating capital to private credit in the region. And the key sectors they are looking to lend to are infrastructure such as data centres, and renewable energy. Last year, Apac-focused private credit fundraising hit almost US$5.9 billion across 33 funds, 7.5 per cent higher than the $5.5 billion raised from 32 funds in 2023, according to Preqin Pro data. 'Given the success of private credit strategies in the US and Europe generally, many of the funds from these markets view Asia as the next frontier, both from a capital deployment perspective and a market diversification perspective,' Shaun Langhorne, partner at law firm Clifford Chance, told The Business Times. State Street is seeing more US credit managers looking to diversify into Apac. West Coast-based managers are looking for new growth ideas, according to Eric Chng, senior managing director for global alternatives at State Street. 'They have come to a point where they can only grow US for so much, they're looking for new ideas for growth. Recently, I had two conversations with two managers, each managing more than US$100 billion in private credit. They are asking me, how do I deploy to Asia?' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The US remains the biggest market for private credit, which market players estimate is around US$1.7 trillion in global assets under management (AUM) currently. Apac, which Preqin said accounts for 5 per cent of the global market, could grow at an annualised rate of 8 per cent until 2029 to US$160 billion. In a State Street survey of 450 institutional investors over the world – 120 of them from Asia – 31 per cent said they would deploy more capital this year to developed Apac, a subset spanning Singapore, Australia, Japan, Hong Kong and New Zealand. That's up from 29 per cent in 2024. American investors in Apac deals A look at some of the biggest private credit deals in the Asia-Pacific shows the deep involvement of American investors. These include India's biggest deal on record: a US$3.4 billion refinancing for conglomerate Shapoorji Pallonji Group. Investors include American managers such as Ares Management, Cerberus Capital Management, Davidson Kempner Capital Management and Farallon Capital Management. Goldman Sachs Asset Management's hybrid fund – part of its private credit strategy – has also reportedly provided US$600 million to partially finance conglomerate Jubilant Bhartia Group's purchase of a 40 per cent stake in Coca-Cola's Indian bottling unit. Another reason investors are showing more interest in Apac is the higher spreads they can get here, compared to the competitive and mature markets in the West, said Chng. 'Because it's so ultra competitive, the spreads are lower than what you get in Asia, and the outperformance of Asian credit is at the top of mind of a lot of Western fund managers … as a fund manager, if you know that you can get 200 basis-point extra spread on the same structure in Asia, you will find a way to get there.' Spread measures the additional yield that investors demand for holding debt with a higher perceived credit risk than a safer bond, such as a government bond or an investment-grade corporate bond Investor interest globally has been rising in private credit, the financing provided by non-bank lenders to companies. That's as returns have beaten those from private equity (PE) in the past three years, and where PE investors are facing challenges in exiting their current investments due to the volatile deal climate. An Apr 29 report by index provider MSCI shows that private credit funds generated 6.9 per cent last year, exceeding the PE funds' return of 5.6 per cent. 2024 marked the third straight year of outperformance. For Apac, the returns could be in the range of mid-to-high-teens per cent, said Chng. More family offices getting invested Within Asia itself, more family offices are allocating funds to private credit, as their liquidity needs and investment horizon are aligning closer to those of institutional investors. 'Family offices are now coming into private credit space in a big way, because they have similar needs to the institutional investors,' said Serene Chen, Asia-Pacific head of credit, currency and emerging market sales, and head of Singapore institutional sales at JPMorgan Chase. While family offices comprise less than 10 per cent of the Asian investor base in private credit, interest is growing, Chen said. JPMorgan has also seen increased participation in private credit from Asian institutions, across local sponsors, insurance and pension funds, she added. With the increased interest, market players said private credit managers have no problems securing capital in Apac. These include Ares, which is raising another Asia special situations fund to boost its credit investments in the region. It's reportedly targeting a size no smaller than its previous fund, which hit about US$2.4 billion in 2023. On Jun 12, Chicago-headquartered investment manager Nuveen announced the second close of its Australian commercial property debt fund, raising more than A$650 million. Last month, Singapore-headquartered Granite Asia said it secured over US$250 million from anchor investors for its first private credit fund. Active fund-raising Market players noted that raising capital isn't an issue, especially as lower returns and the challenging exit environment for PE investments are leading investors to turn to private credit. Some note that, with investors still preferring to steer clear of China – traditionally the biggest private credit market in Asia – the danger is borrowers may have the upper hand. With a 'deep pool of capital chasing' limited pool of borrowers, some private credit fund managers could be tempted to impose less stringent terms to ensure deployment, said State Street's Chng. Clifford Chance's Langhorne said it's not a clear-cut case that a deep capital pool would improve the bargaining position of borrowers. Citing the Sharpooji Pallonji deal signed last month, he said: 'Demand was high and they were able to borrow a substantial amount in one transaction. However, given they are unlikely to be able to raise the same amounts of capital from traditional capital providers, the trade-off for the borrower involves meeting the returns the private credit funds seek, as well as accommodating the structure and protections required to deploy the funds.' The loan tenor for that transaction is three years, with the yield on the zero-coupon bond hitting as high as 19.75 per cent. 'There is a lot of capital available for deployment, but that does not mean that capital providers are just throwing money at the borrowers seeking capital. The investment still has to meet their expected returns and risk expectations,' said Langhorne.
New York Post
05-06-2025
- Business
- New York Post
Office space is now being razed or converted faster than it's being built — for the first time in 25 years
While return-to-office mandates may be the talk of the town, office conversions and demolitions reign supreme. More office space is being demolished or converted than is being built through new construction this year. That's according to CBRE Group data reported by CNBC. This marks the first time the scales have shifted in at least 25 years, according to the commercial real estate services firm, demonstrating the lasting and seismic impact of remote work culture in the wake of COVID-19. The inflection point is clear — 23.3 million square feet of office space across the largest 58 US markets will be demolished or converted by the end of 2025, CNBC reported. Just 12.7 million square feet of new office construction will be completed. 5 5 Times Square was left nearly vacant by its former tenant, the auditing firm Ernst & Young. Now it's destined for a residential makeover. Bloomberg via Getty Images 5 The former facade of the since-converted 25 Water St. The office building slowly emptied as JPMorgan Chase, the National Enquirer and the New York Daily News departed. Stefano Giovannini 'We have more office space than we need, and most of the office space that's being demolished is functionally obsolete,' Barry DiRaimondo, CEO of the West Coast-based commercial real estate developer SteelWave, told The Post. 'So I think it's probably good all the way around.' Widespread pressure by major companies to get employees back in their cubicles, especially in New York City, gave a recent boost to office-leasing activity. More office space is now being occupied than vacated, CNBC reported, but office vacancies continue to hover around record highs at 19%. There are significant silver linings to the decline of office construction. Steven Shoumer, a partner at Blank Rome and co-chair of the firm's real estate group, told The Post in an email that shrinking supplies of new offices will help to stabilize rents as return-to-office demands grow. 'However, it will be interesting to see if office space availability gets tighter with vacancy rates lowering in the coming years, and consequently causes office rents to rise (which would also be good for building owners),' Shoumer wrote. Luxury, 'Class A' office owners and investors will particularly benefit from a thinned-out field of competitors, while well-positioned developers can be the star of the show with office-to-residential conversions. 5 Plans are being cooked up for the conversion of a near-empty office building along Flatbush Avenue to turn into Brooklyn's second-tallest residential tower. Binyan Studio and TenBerke Architects 5 One Wall Street, once the largest city's office-to-condo conversion, has since gained several converted FiDi neighbors. Evan Joseph Photography 5 A rendering of the converted interiors of 25 Water St. Streetsense Developers have primed 85 million square feet of former office space for conversions over the next few years, CNBC added. New York City is leading the pack in office-to-apartment conversions, according to RentCafe, with more than 8,000 new apartments expected from repurposed office buildings projected as of February. That number is only increasing with new conversion plans popping up at neglected addresses every few weeks, from Downtown Brooklyn's 395 Flatbush Ave. to 5 Times Square. Successful conversions across the city are racking up. FiDi's 25 Water St. — the former home of JPMorgan Chase, the National Enquirer and the New York Daily News — set a record this year as the largest office-to-resi conversion in the country. There's also Pearl House in the Seaport District, the massive former-bank One Wall Street and ex-Goldman Sachs HQ 55 Broad. Less office construction can also be a boon to the average Joe, too. Although shrinking office footprints might not get folks out of their morning commute into Midtown, the conversion of other, obsolete offices will offer a boost to housing supplies and cheaper rents.
Indianapolis Star
03-06-2025
- Business
- Indianapolis Star
The Sports Bra, West Coast sports bar known for showing only women's sports, coming to Indy
A West Coast-based sports bar is branching out to Indianapolis, and Hoosiers largely have the Indiana Fever to thank. The Sports Bra, a Portland, Oregon-based sports bar known for exclusively showing women's sports on its TVs, announced in a press release June 3 that it will be opening franchise locations in Indianapolis, Boston, Las Vegas and St. Louis. In the news release, Sports Bra founder and CEO Jenny Nguyen said the four cities' professional women's sports teams and fan bases made them attractive destinations for franchises, forming a "starting five" with the brand's Portland eatery, which opened in 2022. "Together, we're serving fans nationwide who are hungry for spaces that not only champion women's sports, but create a community where everyone feels like they belong," Nguyen said. "There is no better moment than this to open these places." The release did not specify a location for an Indianapolis Sports Bra nor a timeline for opening. Indianapolis found itself at the center of the women sports world last year after the Fever used the first overall pick in the 2024 WNBA draft to select Caitlin Clark, a sharpshooting phenom from Iowa whose ascent to superstardom has coincided with massive jumps in women's sports viewership, revenues and financial investment. The Sports Bra has ridden that wave to expansion; since opening in 2022, the brand has received investments from the 776 Foundation, a fellowship program started by tech entrepreneur and Reddit co-founder Alexis Ohanian, who is also the husband of tennis legend Serena Williams. Hoosiers can expect familiar sports bar fare at the Sports Bra like burgers, appetizers and a full bar, with options for a wide variety of dietary preferences including vegetarian, vegan, gluten-free, non-alcoholic and dairy-free offerings, according to the news release. While Fever games could take center stage in Indy during the WNBA season, the bar also purports to show effectively every televised women's college sport. Each of the four new Sports Bra locations will be locally owned and operated with food from nearby producers and "support their hometown teams" with decorations and team memorabilia, the release said.
Yahoo
20-05-2025
- Health
- Yahoo
In-N-Out Burger forced to change its menu after RFK's new rule
In-N-Out Burger has announced that changes are being made to its menu after Health and Human Services Secretary Robert F. Kennedy Jr announced the Food and Drug Administration's intent to phase out the use of petroleum-based synthetic dyes in the nation's food supply. The West Coast-based burger chain will be changing the recipe used to create its popular strawberry shake and signature pink lemonade in order to remove the red dye No. 40 in the drinks. In-N-Out also revealed that it would be making changes to its ketchup, and switching out the ingredient, high fructose corn syrup, for real sugar. According to a statement, In-N-Out Owner and President Lynsi Snyder shared with Newsweek, the red dye will be replaced with beta carotene and vegetable juice. 'We've additionally introduced a healthier beverage sweetener option by replacing sucralose and saccharin sweetener packets with Stevia Leaf Extract, and added a non-dairy alternative, oat milk creamer,' she told the publication. 'We're also in the process of transitioning to ketchup made with real sugar instead of high fructose corn syrup, and researching an even better-quality oil for our fries.' The burger chain has become one of the first fast-food chains to start shifting away from using petroleum-based synthetic dyes since the HHS and FDA made the announcement last month. The Trump administration said the move to eliminate synthetic dyes from the food supply by the end of next year could mark a 'major step forward' in the drive to 'Make America Healthy Again.' The ban would impact products such as breakfast cereals, candy and snacks. The dyes have been tied to neurological problems in some children. 'For too long, some food producers have been feeding Americans petroleum-based chemicals without their knowledge or consent,' Kennedy said in a statement at the time. 'These poisonous compounds offer no nutritional benefit and pose real, measurable dangers to our children's health and development.' He added: 'We're restoring gold-standard science, applying common sense, and beginning to earn back the public's trust. And, we're doing it by working with industry to get these toxic dyes out of the foods our families eat every day.' At a cabinet meeting at the beginning of April, Kennedy claimed the dyes directly affect 'academic performance, violence in the schools, and mental health, as well as physical health.' The department said the FDA is fast-tracking the review of natural alternatives to synthetic dyes and that its agency is taking steps to issue guidance and provide regulatory flexibilities to industries. 'We have a new epidemic of childhood diabetes, obesity, depression, and ADHD,' FDA Commissioner Dr. Marty Makary said during the initial announcement. 'Given the growing concerns of doctors and parents about the potential role of petroleum-based food dyes, we should not be taking risks and do everything possible to safeguard the health of our children.'
Yahoo
19-05-2025
- Health
- Yahoo
In-N-Out Burger forced to change its menu after RFK's new rule
In-N-Out Burger has announced that changes are being made to its menu after Health and Human Services Secretary Robert F. Kennedy Jr announced the Food and Drug Administration's intent to phase out the use of petroleum-based synthetic dyes in the nation's food supply. The West Coast-based burger chain will be changing the recipe used to create its popular strawberry shake and signature pink lemonade in order to remove the red dye No. 40 in the drinks. In-N-Out also revealed that it would be making changes to its ketchup, and switching out the ingredient, high fructose corn syrup, for real sugar. According to a statement, In-N-Out Owner and President Lynsi Snyder shared with Newsweek, the red dye will be replaced with beta carotene and vegetable juice. 'We've additionally introduced a healthier beverage sweetener option by replacing sucralose and saccharin sweetener packets with Stevia Leaf Extract, and added a non-dairy alternative, oat milk creamer,' she told the publication. 'We're also in the process of transitioning to ketchup made with real sugar instead of high fructose corn syrup, and researching an even better-quality oil for our fries.' The burger chain has become one of the first fast-food chains to start shifting away from using petroleum-based synthetic dyes since the HHS and FDA made the announcement last month. The Trump administration said the move to eliminate synthetic dyes from the food supply by the end of next year could mark a 'major step forward' in the drive to 'Make America Healthy Again.' The ban would impact products such as breakfast cereals, candy and snacks. The dyes have been tied to neurological problems in some children. 'For too long, some food producers have been feeding Americans petroleum-based chemicals without their knowledge or consent,' Kennedy said in a statement at the time. 'These poisonous compounds offer no nutritional benefit and pose real, measurable dangers to our children's health and development.' He added: 'We're restoring gold-standard science, applying common sense, and beginning to earn back the public's trust. And, we're doing it by working with industry to get these toxic dyes out of the foods our families eat every day.' At a cabinet meeting at the beginning of April, Kennedy claimed the dyes directly affect 'academic performance, violence in the schools, and mental health, as well as physical health.' The department said the FDA is fast-tracking the review of natural alternatives to synthetic dyes and that its agency is taking steps to issue guidance and provide regulatory flexibilities to industries. 'We have a new epidemic of childhood diabetes, obesity, depression, and ADHD,' FDA Commissioner Dr. Marty Makary said during the initial announcement. 'Given the growing concerns of doctors and parents about the potential role of petroleum-based food dyes, we should not be taking risks and do everything possible to safeguard the health of our children.'
