Syfe & BlackRock partner to expand private credit access in Singapore

Syfe has formed a collaboration with BlackRock to broaden access to private credit investment for Accredited Investors in Singapore.

The partnership will enable clients of Syfe to invest in BlackRock's US middle market direct lending strategy, a private credit option that was previously available primarily to institutions and individuals with significant wealth.

Private credit entails direct lending to companies and is considered an alternative to public debt, often delivering higher yields and less volatility. According to data from Cliffwater, private credit funds have produced average annual returns of around 8-10% over the last ten years, surpassing typical returns from traditional bond markets.

Syfe is among the Asia Pacific region's largest digital investment platforms and currently manages assets exceeding USD $10 billion. BlackRock, managing over USD $63 billion in assets on its private credit platform as of December 2024, will offer marketing exclusivity for its strategy with Syfe in Singapore for a limited time. The collaboration gives Accredited Investors access to institutional-grade private credit at lower minimum investments than have previously been required.

Ritesh Ganeriwal, Managing Director, Head of Investment and Advisory at Syfe, stated: "Syfe's launch of BlackRock's US middle market direct lending strategy unlocks access for our clients to products with exposure to high quality, institutional-grade private credit opportunities that are typically reserved for large institutional investors or ultra-high-net-worth individuals. We're incredibly proud to be the first digital investment platform in Singapore to offer this with BlackRock. This marks a new chapter in making wealth-building tools more accessible to investors."

Private credit investments are designed to reduce exposure to fluctuations in public markets and aim to provide a more stable source of income. These opportunities have traditionally appealed to institutions, family offices, and ultra-high-net-worth investors, but have involved high capital requirements and complex fee structures.

Ganeriwal further commented: "Typically, investing in private credit and other private market opportunities requires significant capital, limiting the opportunities to a select few clients and a small number of funds. With this new strategy, Syfe has not only lowered the investment minimums to enable Accredited Investors to access more diversified strategies but has also removed the complex fees and sales charges often added by traditional platforms. This is perfectly aligned with Syfe's mission to empower people to build their wealth for a better future."

Accredited Investors are individuals who must meet specific net worth or income thresholds as determined by the Monetary Authority of Singapore. The new offering will allow these investors to participate in a sector experiencing growing interest in recent years.

BlackRock's Head of Capital Formation Team for APAC, George Maltezos, remarked: "We believe private markets are shaping the future of wealth with private credit gaining significant traction in recent years and we're excited to see the democratisation of such opportunities. Through this collaboration with Syfe, we're pleased to expand access to our US middle market direct lending strategy and empower Accredited Investors in Singapore to make smarter, more diversified investment choices."

Syfe's collaboration with BlackRock comes as wealth management platforms seek to provide clients with greater choice and access to a wider range of diversified investment opportunities. The move is intended to support the development of wealth-building tools that cater to more investors within Singapore's Accredited Investor community.

BlackRock's private credit platform currently manages a wide array of strategies across global markets, while Syfe continues to diversify its offerings through partnerships with established asset managers.