A wholly owned subsidiary of the Abu Dhabi Investment Authority committed an undisclosed amount to a South Korean private credit strategy managed by alternative asset manager SC Lowy, according to a statement on Sept. 23.
The commitment will be managed through a single managed account that will focus on the real estate sector and logistics in South Korea, said Lionel de Somer, chief strategy officer of SC Lowy.
The SMA is an open-ended fund and SC Lowy expects the relationship to grow in the future, he said. “The SMA has the ability to invest alongside the fund manager’s third Asia-Pacific private credit fund or on its own,” he added.
SC Lowy held a first close of its third Asia-Pacific private credit fund, which is known as Strategic Investments IV and focused on direct lending, at $130 million at the start of the year, and aims to raise $500 million by the end of the first half of 2025.
A “substantial portion” of the SMA and 75% of the SI IV has already been deployed, de Somer said.
The SMA will provide senior secured lending for residential, commercial and logistic developments in major cities, the statement said.
“Real estate private credit is growing rapidly in South Korea and SC Lowy is one of the country’s leading providers of innovative financing solutions. This commitment aligns with our strategy of supporting differentiated private real estate credit platforms alongside partners with established track records and strong market access,” said Mohamed Al Qubaisi, executive director of the real estate department at ADIA, in the statement.
The sovereign wealth fund has $993 billion in assets, and SC Lowy has $1.6 billion in assets under management.
