January Capital has closed its growth credit fund at over US$130 million. This is an important step toward addressing a long-standing funding gap for growth-stage technology companies in the Asia Pacific region.
The Singapore-based investment firm said the fund will focus on providing non-dilutive capital, which means companies can raise funds without giving up ownership.
This type of financing will mainly support sponsor-backed technology businesses and is still much less developed in Asia Pacific compared to the United States.
The fund received backing from several institutional investors, including Japan’s SBI Holdings, GMO Payment Gateway, Orient Growth Ventures, and the Australian Philanthropic Services Foundation.
Their participation highlights growing interest from institutions in alternative credit investments linked to the Asia Pacific technology sector, especially at a time when equity funding is uncertain and more selective.
January Capital’s growth credit fund provides senior secured loans, usually between US$10 million and US$20 million. These loans are aimed at growth-stage, sponsor-backed technology companies that need capital to expand while avoiding giving away too much equity.
The loans are designed to help tech companies scale their operations without significantly diluting ownership. This makes growth credit a flexible alternative to raising equity funding.
While growth credit is well-established in the US, it is still emerging in the Asia Pacific region. January Capital estimates that growth credit makes up less than 2% of funding for tech-enabled companies in Asia Pacific, compared to around 20% in the US.
“Growth credit has been a natural extension for us, given we have seen first-hand how few non-dilutive options are available for such firms in our region,” said January Capital founding partner Benjamin Dunphy.
Jason Edwards, founding partner of January Capital and co-head of Credit, said the strong interest from global institutions is a “clear signal that investors want disciplined exposure to high-quality, high-growth businesses in our core markets”.
“There are only very few venture debt funds active in Southeast Asia today, and none is active in the segment that the fund is targeting,” DEG said in its investment disclosure.
January Capital, which usually invests in equity, said it has completed several individual credit deals using funds from its existing investors. These deals included loans to a Southeast Asian e-commerce support company and an Australian software firm.
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