Danantara Invests USD1 Billion in Private Credit Business
BPI Danantara has given a USD1 billion private credit investment mandate to Swiss asset manager Partners Group. The mandate is one of Danantara’s largest investments in its efforts to expand its portfolio into global private markets.
The investment includes USD600 million for direct lending opportunities managed by Partners Group. It also sets aside USD400 million as a discretionary tranche to be managed by Partners Group. These funds can also be used as capital for co-investment opportunities.
Danantara has confirmed the investment in Partners Group’s private credit business. However, Danantara declined to comment on the value of the investment.
“The investment in Partners Group will be directed towards direct lending opportunities across Asia, especially Indonesia,” said Danantara Chief Investment Officer Pandu Sjahrir on Thursday, 27 August 2026.
“We expect this investment to generate good returns and enable knowledge transfer that will ultimately benefit the Indonesian people,” Pandu continued.
According to Pandu, the investment is part of Danantara’s mandate to invest both domestically and internationally. He added that the capital will ultimately be returned to Indonesia.
The move demonstrates Danantara’s strategy of not relying solely on domestic asset investments. Placing funds in the private credit market also opens access to corporate financing opportunities across Asia, while providing Danantara with room to build experience in managing private assets globally.
Danantara Expands Investment into Private Markets
The investment in Partners Group is a strong signal of Danantara’s expansion into the global private credit industry. Danantara is now increasingly active in seeking opportunities to increase capital through global private markets. The global private credit industry is currently valued at around USD1.8 trillion.
Last year, Danantara recruited a former investment professional from Singapore’s GIC Pte. The professional was tasked with leading Danantara’s global private markets coverage.
Danantara oversees hundreds of state-owned enterprises (SOEs). The institution also controls assets that government officials say are worth around USD900 billion.
In June 2026, Danantara raised USD1.5 billion through its first international bond issuance. Danantara has also begun expanding its investments into various assets outside Indonesia.
In early August 2026, Danantara agreed to invest USD2.5 billion in a joint venture. The investment was directed towards JBS NV’s business in Australia and New Zealand. JBS is the world’s largest meat processing company.
Sovereign Wealth Funds Enter Private Credit
Danantara is one of the newest sovereign wealth funds to allocate funds to the private credit market. The Indonesia Investment Authority (INA) has also shown interest in the sector. INA plans to co-fund transactions with regional and global private credit managers.
The institution is also opening opportunities for cooperation with other sovereign wealth funds. In Singapore, Temasek Holdings Pte. formed a private credit platform in 2024. The platform has an initial portfolio of around SGD10 billion or USD7.9 billion. Its portfolio consists of direct investments and a number of credit funds.
Meanwhile, Mubadala Investment Co. from Abu Dhabi remains confident in the prospects of private credit investment. This stance was conveyed despite the asset class facing increasing scrutiny. The scrutiny stems from declining returns and concerns about credit quality.
Partners Group Mandate Reaches USD1 Billion
Partners Group announced the USD1 billion mandate in early August 2026. However, the company did not disclose the identity of the institutional investor that provided the mandate.
Partners Group said the mandate will target senior and junior direct lending opportunities. Investments will be focused on the Asia-Pacific region.
The mandate uses an open-ended evergreen structure. This structure allows investments to continue without a fixed maturity date.
Partners Group currently manages assets of more than USD186 billion. The company faced increased client withdrawals in early 2026.
Partners Group Chairman Steffen Meister said this in June 2026. According to Meister, the company is considering reducing the size of several evergreen funds. These funds are intended for wealthy investors.
Partners Group is also seeking additional investment opportunities in Asia. The move comes as clients seek to diversify investments away from the United States.
On the other hand, Partners Group will exit its private credit investment in bubble tea brand Gong cha. The decision follows the purchase of the Taiwanese company by Bain Capital. For information, Bain Capital is said to have bought Gong cha from TA Associates in August 2026.