Press Release

August 2025:

Alcars Limited invests in $100m international Private Credit Fund

GEORGE TOWN, CAYMAN ISLANDS – August 19, 2025 – ALCARS Limited, a fast-growing private equity company based in the Cayman Islands, today announced a significant investment into a new $100 million international Private Credit Fund. The investment fund, which will be solely funded by ALCARS Limited, is designed to provide essential debt financing to businesses that are typically not publicly traded.

The Private Credit Fund will function as a non-bank lender, offering tailored debt solutions, primarily to small and medium-sized enterprises. The fund aims to generate returns through a combination of interest payments, origination fees, and, in some cases, equity participation. These investments operate outside of public markets, offering the potential for higher yields than traditional fixed-income investments in exchange for illiquidity and greater risk.

How the Fund Operates

1. Pooling Capital: The fund gathers capital, which is supplied exclusively by ALCARS Limited, a sophisticated and accredited investor.
2. Lending to Businesses: The fund’s managers will then deploy this pooled capital, lending it to private companies, many of which may face challenges in securing traditional bank loans.
3. Generating Returns: The fund’s profitability is driven by the interest payments and other fees generated from these loans.
4. Investment Diversification: This strategic investment acts as an alternative asset class for ALCARS Limited, offering returns that are less correlated with public stock and bond markets.

Key Characteristics

• Non-Bank Lending: The private credit provided by the fund originates from a non-bank financial institution, distinguishing it from traditional public bank loans.
• Tailored Structures: The loans are meticulously customized to meet the specific needs of the borrower and often come with longer maturities than conventional bank loans.
• Bespoke Terms: All loan terms and interest rates are privately negotiated between the fund and the borrower, ensuring a personalized approach.
• Higher Yield Potential: This type of investment typically provides higher yields to compensate for the reduced liquidity and increased credit risk.
• Illiquidity: As a private credit vehicle, the fund’s investments are not traded on public markets, which makes them less liquid compared to public bonds.

Growth in the Private Credit Sector

The private credit sector has experienced significant growth for a variety of reasons. Following the 2008 financial crisis, banks have shown a reduced willingness to lend to smaller or riskier borrowers due to tighter regulations. This has created a gap in the market, which businesses are increasingly seeking to fill by pursuing alternative sources of financing like private credit to meet their funding needs.

About ALCARS Limited ALCARS Limited is a private equity company based in the Cayman Islands, focused on strategic investments across a variety of asset classes to achieve long-term growth and value creation.

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