Investments

BNY Mellon Enhances Asia's Private Credit Landscape Through Strategic Partnership

BNY Mellon has broadened its offerings in Asia by partnering with a United States asset manager known for specializing in alternative credit.

The collaboration with the U.S.-based alternative credit expert CIFC has been enhanced, as noted in a recent announcement. This enhancement allows BNY Mellon Investment Management to incorporate CIFC's U.S. direct lending strategy into its worldwide distribution network, serving clients throughout EMEA and the Asia-Pacific region.

Cathinka Wahlstrom, BNY Mellon's Chief Commercial Officer, remarked on the decade-long relationship with CIFC, highlighting the evolution from asset servicing to incorporating the investment management distribution platform into their partnership.

The interest in private credit investment remains strong among private banks in Asia, despite potential challenges such as anticipated lower base rates, the resurgence of traditional lending institutions, and increasing credit costs. BNY Mellon indicates that the private credit sector is experiencing growth due to both cyclical and long-term trends. The firm also noted a particular underrepresentation in European institutional allocations while witnessing a global rise in investor interest in this area.

Matt Oomen, BNY Mellon Investment Management's global head of distribution, emphasized the ongoing demand from clients for inventive investment options within both the public and private sectors, with a special focus on U.S. private credit.