Exclusive Interview with Clifford Lee, Global Head of Investment Banking at DBS: Insights into the Private Credit Market in Asia

Singapore-based Clifford Lee has recently been promoted to global head of investment banking at DBS, a Singapore bank with a strong presence in Asia. Previously serving as managing director, global head of fixed income, Lee now oversees debt and equity capital markets for the bank.

In a recent interview with FinanceAsia, Lee discussed the rise of the private credit markets in Asia and the performance of DBS’s investment in a fund raised by Muzinich & Co., a private credit specialist based in New York. The fund, which closed at $500 million in July 2023, focuses on providing funding for underserved lower-mid market companies in the Asia Pacific region.

Lee highlighted the importance of private credit in Asia, especially for SMEs that may not have access to traditional funding channels. He explained that while banks in Asia tend to focus on top-tier investment-grade names, private credit offers alternative financing options for companies that may be asset rich but cashflow restrained.

DBS’s investment in the Muzinich fund allows the bank to provide clients with financing solutions that may not be available through traditional public or bank markets. Lee emphasized the importance of thorough due diligence in the private credit space, as private credit funds typically only approve a small percentage of the deals they review.

Looking ahead, Lee sees significant growth potential for private credit in Asia, particularly in markets like Hong Kong, Singapore, Japan, South Korea, and Australia where the rule of law is well-established. He believes that as the market matures and regulatory frameworks develop, private credit will continue to play a vital role in the region’s financing landscape.

Overall, Lee is optimistic about the future of private credit in Asia and hopes for stable economic growth in the region to fuel further investment opportunities. With China’s GDP growth exceeding expectations in the first quarter of 2024, there is optimism that the region’s markets will continue to thrive in the coming years.