Danantara, Indonesia’s sovereign wealth fund, placed investment mandates totalling USD 1 billion with Swiss asset manager Partners Group in August, according to Bloomberg, which reported USD 600 million for direct lending and USD 400 million for discretionary co-investment tranches. Danantara confirmed the investment but declined to comment on the size; a Partners Group spokesperson also declined to comment.
Direct lending focus
Pandu Sjahrir, Chief Investment Officer at Danantara, said the investment in Partners Group will be directed toward direct lending opportunities throughout Asia, especially Indonesia. The global private credit industry is valued at USD 1.8 trillion, creating substantial scope for regional expansion by larger asset managers.
Partners Group manages more than USD 186 billion in assets. The Swiss manager announced the USD 1 billion mandate at the beginning of August but did not initially name the institutional investor. It has been under pressure of its own: client withdrawals rose earlier this year, and in June chairman Steffen Meister said the firm was weighing a reduction in the overall size of its evergreen funds for wealthy investors. Sjahrir said the investment targets not only returns but also knowledge transfer that can strengthen Indonesia’s investment capacity, with capital placed overseas ultimately returning to Indonesia and benefiting society.
Growing appetite
Danantara manages hundreds of Indonesian state-owned enterprises with assets of about USD 900 billion. The sovereign wealth fund raised USD 1.5 billion through its inaugural international bond issuance in June 2026, expanding its capital base for deployment in international markets. In early August, Danantara agreed to invest USD 2.5 billion in a joint venture managing JBS NV operations in Australia and New Zealand.
Other regional sovereign investors have moved into private credit. Temasek Holdings from Singapore established a private credit platform in 2024 with an initial portfolio of approximately SGD 10 billion, equivalent to USD 7.9 billion. Mubadala Investment Co from Abu Dhabi has expressed continued optimism about private credit investments despite tightening regulatory scrutiny on the sector.
Frequently asked questions
What is Danantara?
Danantara is Indonesia's sovereign wealth fund that manages hundreds of state-owned enterprises. As of August 2026, the fund manages hundreds of state-owned enterprises with assets of about USD 900 billion and has begun expanding its international investment activities.
What is Danantara investment management?
Danantara's investment management involves deploying capital across global private markets and direct lending opportunities, particularly in Asia and Indonesia. The fund raised USD 1.5 billion through its inaugural international bond issuance in June 2026 to fund these investment mandates.
How much money does Danantara have?
Danantara manages hundreds of state-owned enterprises with assets of about USD 900 billion and raised USD 1.5 billion through its inaugural international bond issuance in June 2026. In August 2026, the fund also agreed to invest USD 2.5 billion in a joint venture managing JBS NV operations in Australia and New Zealand.
