Adia backs South Korean real estate fund: The Abu Dhabi Investment Authority (Adia) invested an undisclosed amount in a South Korean real estate credit fund managed by alternative asset manager SC Lowy, IPE Real Assets reports. Adia made the investment — of which a “significant” proportion has already been deployed — through a separately managed account, according to details of the transaction picked up by Preqin.

About the fund: SC Lowy’s Strategic Investments Fund IV is an Asia Pacific-focused direct lending fund providing financing to South Korean-based developers, construction companies, and domestic financial institutions, focusing on residential, commercial, and logistics projects in major cities. It closed USD 130 mn at the start of 2024, and has a USD 500 mn target.

What they said: “We see a huge [window] with stable returns of around 15% IRR and 1.5x [multiple on invested capital],” SC Lowy chief strategy officer Lionel de Somer told Preqin. “Given the lack of private capital in Asia, a booming economy, the need for private credit will increase in the next couple of years,” he added.

REMEMBER- Adia is pouring more into alternative funds: Last week, Adia shelled out funding for London-based credit investor Polus Capital Management, while in June, the sovereign wealth fund made a USD 199.8 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments, and an unspecified investment in Jain Global. During the same month, an Adia subsidiary backed European Pemberton Asset Management’s new Nav strategic financing strategy.

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