BPEA Credit

In the world of FDI, unexpected success stories can teach us valuable lessons about investment attraction and why the fundamentals are universal. FDI flows to India dropped by 43% in 2023 to $28 billion amid a decline of 8% for developing Asia, including a decline for China, which is the 2nd largest FDI recipient in the world, as per the latest report by the UN Trade and Development (UNCTAD). In 2022, India’s FDI inflows had risen by 10% to $49 billion, and annual FDI inflows to India have consistently increased since 2012, when it was $24 billion, less than half of 2024 inflows. As a large developing economy, we tend to see other SE Asian nations or emerging markets as key competitors in attracting FDI. After all, India boasts of compelling growth prospects for one of the largest economies, a vast and growing middle class, and a favorable investment climate. This narrative is reinforced by the current slowdown in Europe and an impending slowdown in the USA. What was interesting, therefore, was listening to the Governor of the State of Indiana, Eric Holcomb, on the Bloomberg Daybreak Asia podcase a few days ago. The State of Indiana, “…a relatively small state, is experiencing a tremendous upswing.. ” in his own words. He added that Indiana received a record-high capital investment of $8.7 billion three years ago. Two years ago, that surged to over $20 billion. Last year, capital investment into the State of Indiana was a whopping $28.7 billion, with over $20 billion from foreign direct investment! State of Indiana’s share in FDI is nearly 10% of FDI into the USA, the largest FDI recipient globally, and while accounting for less than 2% of the national GDP! Governor Holcomb went on to add that Indiana's achievements are underpinned by its status as the number one manufacturing state per capita in the U.S. “This positive trajectory is a testament to Indiana’s ability to offer certainty, predictability, stability, and continuity, which are essential for attracting and retaining business investments.” We are not just competing with other Asian or developing economies for FDI inflows. Our offering of our vast young working population, burgeoning middle class, strong growth prospects and strong markets, while not attractive, may not be sufficient to attract the kind of capital we need to usher India towards a US$ 10 trillion economy. Building out the investment opportunities and investment climate, through offering Certainty, Clarity, Continuity, and Stability would need to be the key priorities of all stakeholders in the market. #FDI #IndiaGrowth #EmergingMarkets #InvestmentOpportunities

BPEA Credit announced a strategic partnership with DMW Group (DMW) today, through a debenture subscription! 🚀   Serving diverse industry segments such as automotive & agricultural, aerospace, flow control, and railways, DMW has built a strong reputation with blue-chip companies and recently acquired a controlling stake in a foundry business to enhance its value chain. Their strong relationships with blue-chip companies and recent acquisition of a foundry business position them for significant growth.   Our flexible ‘solutions capital’ will support DMW's expansion plans, including capital expenditure, working capital, and the integration of the foundry business. We're excited to partner with such a dynamic team and contribute to the growth of India's manufacturing sector.   #BPEACredit #Investment #Manufacturing #PrecisionEngineering #DMWGroup #SolutionsCapital #PrivateCredit #PerformingCredit

BPEA Credit announced a strategic partnership with DMW Group (DMW) today, through a debenture subscription! 🚀   Serving diverse industry segments such as automotive & agricultural, aerospace, flow control, and railways, DMW has built a strong reputation with blue-chip companies and recently acquired a controlling stake in a foundry business to enhance its value chain. Their strong relationships with blue-chip companies and recent acquisition of a foundry business position them for significant growth.   Our flexible ‘solutions capital’ will support DMW's expansion plans, including capital expenditure, working capital, and the integration of the foundry business. We're excited to partner with such a dynamic team and contribute to the growth of India's manufacturing sector.   #BPEACredit #Investment #Manufacturing #PrecisionEngineering #DMWGroup #SolutionsCapital #PrivateCredit #PerformingCredit

Home to an impressive 25 unicorns, Singapore (SG) leads the charge in Southeast Asia's (SEA) tech revolution. In 2022, it dominated VC investment, claiming a staggering 56% of the region's deal volume. 80 of the world's top 100 technology firms have a presence here. Per DealStreetAsia, SG boasts 25 unicorns, the highest number in SEA. Strategically positioned in the heart of SEA, SG stands out with its implementation of numerous bilateral and regional free trade agreements. This, combined with its digital & data-friendly policies, creates a favorable environment for tech businesses. A prime example is Google’s Next Billion Users project, based in SG & focusing on creating products for emerging markets. This demonstrates the role SG can play in helping MNCs tap into the potential of SEA. Over a decade ago, AvePoint, a SaaS solutions provider from New Jersey, recognized this potential & established its entry point in SG. In 2022, AvePoint announced its newly established SG$100mn R&D Hub in SG, which would be a major hub within the company’s worldwide R&D network. Today, AvePoint's R&D hub & Asia HQs are thriving, employing nearly 200 people. Of the 7,000 MNCs in SG, 4,200 have their regional HQs here, managing their activities across the region. This provides a critical mass of business partners for collaborations & opportunities that new tech trends bring. SEA is predicted to become the 4th largest economy by 2030, offering unprecedented growth opportunities for businesses. Most countries in SEA have young populations with a median age of < 30 and a rising middle class. SG’s focus on talent development & productivity puts it at the forefront of innovation with a strong tech ecosystem. Based on a 2019 report on SG hiring trends by jobs website Glassdoor, hiring in SG’s tech industry outpaced that of the finance sector in 2018, signaling a burgeoning tech market presence. With connectivity to the region & the world, a readily available pool of global tech talents encourages startups to pick SG for their global offices. SG topped the Global Talent Competitiveness Index in Asia-Pacific for the 6th straight year, coming in 2nd in global rankings behind Switzerland & ahead of the US. With 74 data centers, SG hosts 60% of SEA data centers & houses over 22 submarine internet cables, placing it at the heart of regional & global data flows. SG was ranked top in Asia for digital infrastructure & industry connectivity in The Economist Intelligence Unit’s Asian Digital Transformation Index, beating South Korea, Japan, Hong Kong, and China in digital readiness. At BPEA Credit, we recognize SG’s immense growth potential & aim to enhance this success & innovation by collaborating with leading businesses in this dynamic region. We're poised to drive transformative growth in this market by leveraging our investment & structuring expertise. #SingaporeTech #TechOpportunities #SolutionsCapital #GlobalTalent #TechRevolution #BPEACredit

Thanks to our investors' unwavering support, Select Short Term Income Fund I (SSTIF-I), our newest fund series, achieved its initial close in a remarkable six-week timeframe! This quick fundraising success is a testament to our strong investor relationships, dedicatedly built over the last decade, and our strategic approach to understanding the evolving needs of market participants. SSTIF I garnered support from existing and new investors, highlighting growing confidence in our vision and strategy.   The investor demand for this fund is well matched with the supply of ample investment grade and similarly profiled corporates looking for medium-term, timely, and non-dilutive capital for growth.   This fund has been raised at an opportune time with the backdrop of strong credit growth and an expected pick-up in private capex going forward. This would necessitate the availability of diversified capital pools to meet the growing needs of the corporate sector. We at BPEA Credit will continue to support the growth of these companies through our customized capital solutions. #PrivateCredit #Investment #Fundraising #BPEACredit #SolutionsCapital

Our new fund series, BPEA Credit Select Short Term Income Fund - I (SSTIF – I) with a target fund size of INR 1500 crore / ~US$ 180 million, including a green shoe option for INR 750 crore / ~US$ 90 million, announced a first close this month. Distinct from BPEA Credit India Fund Series (where it’s most recent Fund III raised US$ 600 million of discretionary capital), SSTIF - I was established to meet the market's demand for a stable, shorter-term fixed income returns with regular income distribution. Aimed at high-growth companies, this Fund invests in bespoke credit solutions that focus on capital preservation and steady cash flow. This milestone underscores our commitment to providing tailored debt solutions to investee companies and provide diversified investment returns across the yield and tenor curve to our investors. Our disciplined investment process and strong risk controls, combined with our robust platform and on-ground presence in India, position us uniquely to source high-quality investments. We look forward to leveraging our expertise and the robust support from our investors to deliver innovative financial solutions and foster sustainable growth in the credit markets. #PrivateCredit #Investment #Finance #Growth #BPEACredit #SSTIFI

India’s emergence as a global hub for precision manufacturing & sourcing has been driven by its technical capabilities, skilled workforce, cost advantages, and enabling government policies. With a need for highly accurate components and systems with tight tolerances, fine finishes, and high reliability, precision manufacturing serves various sectors, including aerospace, automotive, defence, electronics, consumer goods, healthcare and more. Remarkably, CNC (Computerised Numerical Control) machines now account for around 85% of the machine tools industry output. The industry splits into two major sectors: automotive (52%) and non-automotive (48%). The automotive sector is on a robust growth trajectory, with OEM demand - 62% of auto component needs—expected to achieve a 14% CAGR until FY26 driven by production increases and price realizations. Auto component exports are also set to grow by 7-9% from FY24-29, propelling the precision machining market to a 12% CAGR. Aerospace and defence, the second-largest consumer of precision engineering contribute nearly 20%, also shows strong potential. The Indian Aerospace and Defence market, valued at USD 27 billion in 2024, is projected to double by 2033. The diversity of end user industries allows India’s precision engineering sector to provide resilient performance. India boasts a pool of highly skilled engineers and technicians, and the continuous emphasis on education and vocational training can ensure a steady supply of talent. Government initiatives like Make in India, and Production Linked Incentive (PLI) schemes are major growth drivers. The PLI scheme encourages 100% FDI with an expected capex of INR 2.5-3 lakh crore, while Make in India promotes substantial investments in domestic manufacturing. Additionally, the China 1 strategy, spurred by supply disruptions during the pandemic, is drawing global companies to diversify supply chains by sourcing from India. With robust sectoral growth and supportive policies, the future of precision manufacturing in India is exceedingly promising. #PrecisionManufacturing #CNC #AutomotiveIndustry #Aerospace #MakeInIndia #PLI #ManufacturingGrowth #Innovation #BPEACredit

In recent years, India's tier I cities have witnessed an unprecedented surge in the flexible workspace sector, doubling its supply to 40 MSF by 2021, with a remarkable CAGR of ~30%. This growth, projected to reach 95 MSF by 2026, implying a CAGR of ~19% over the next 5 years, signifies a paradigm shift in workspace dynamics. The allure of flexible workspaces lies not just in their adaptability but also in their ability to cater to the diverse needs of a wide array of industries. From IT/ITes to BFSI, from Telecom & Media to Retail, the appeal cuts across sectors, driven by the promise of agility and cost-efficiency.                Fuelling this momentum is the emergence of managed office spaces, offering a bespoke solution for large enterprises seeking a blend of flexibility and customization. Focus has now shifted towards providing experience-based work environment with high degree of technological integration which has led to differentiation in product / service offerings. This shift towards managed office spaces signifies a maturation of the market, as operators strive to meet the evolving demands of discerning tenants. Low cost hiring in tier II cities, move towards providing experience-based work environment and expansion of start-ups across cities is expected to drive demand in the segment further. Looking ahead, the trajectory is clear: a projected growth of 20-25% in demand over the next 4-5 years, with occupancy levels expected to stabilize at 80%. Tier II cities are poised to become the new frontier, offering untapped opportunities for expansion and innovation. Our funding solution for WeWork India underscores BPEA Credit’s support to evolving sectors such as flexible workspaces fostering innovation and seizing growth opportunities. #FlexibleWorkspace #ManagedOfficeSpaces #WorkspaceTrends #WorkspaceExpansion #BPEACredit

Curious about the impact of India's inclusion into JPMorgan Chase & Co.’s bond index on the private credit landscape? Kanchan Jain, Head at BPEA Credit, shares her perspective on this as she delves into this pivotal development in an article by Bloomberg. Click below to uncover exclusive insights! 👇 https://lnkd.in/gTgxzZNg  #BPEACredit #PrivateCredit #IndianFinance #JPMorgan #Bloomberg

We look forward to being a part of Singapore Venture & Private Capital Association’s 2024 Annual Conference on May 16th where BPEA Credit Group’s Head, Ms. Kanchan Jain will share her insights on navigating Asia's private credit landscape alongside esteemed panellists Joel S., Partner, Linklaters, Sean Low (刘轩昂）, CEO, Golden Vision Capital and Nitish Agarwal, CEO, Orion Capital Asia. Exploring the dynamic realm of Private Credit and Distressed Opportunities in Asia, the panel will deep delve into the pivotal question: Is this asset well-positioned for success in our region? Join them as they dissect trends, assess risk factors, and explore pathways to capitalize on Asia's burgeoning credit market. #SVCA2024 #PrivateCredit #DistressedOpportunities #Asia #BPEACredit #IndustryInsights