Greater China Credit Fund (“GCCF” or “Fund II”), aims to provide secured loan to growing SMEs and address the trillion dollar funding gap that exist in China and capitalised off the inefficiencies operating in the “Shadow Banking” / non-banking finance industry.
GCCF’s objective is to generate consistent non correlated unleveraged returns with annual distributions from cash generating loans and debt structures. Target investment size per loan will range between US$5 million and US$20 million. While we are sector agnostic, we tend to focus on growth companies with a consumption angle. We do not lend to distressed companies or companies servicing non-performing loans.
The instruments we use normally comprise senior secured loans with first lien on hard assets with loan-to-value (“LTV”) of less than 60%. The collateral package may also include personal guarantees, assignment of off take agreements and may include share pledges of listed companies in Hong Kong. In case of default, enforcement will be via China, Hong Kong, and international courts.
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