Growth Opportunities

A trillion-dollar financing gap for Small and Medium Sized Enterprises (SMEs) in Asia alone offers a favourable investment opportunity for us. Access to capital by SMEs continues to be limited in different economies throughout Asia.  For example, less than 10% of China’s 50 million SMEs have access to bank financing while these same SMEs contribute over 60% to China's GDP, 50% of China's tax receipts and over 80% of urban employment. The capital raising environment for SMEs in rest of Asia is similarly constrained with banks and capital markets traditionally favouring large corporates and government sponsored entities.

We focus on becoming a diversified non-bank financial institution via credit and structured finance lending in Asia with a focus on Greater China. We believe that the Company will benefit from the arbitrage present in the system whereby SMEs are finding it difficult to access debt financing from traditional bank channels. We wish to support the entrepreneurs of these underserved SMEs and participate in their expansion. Through the above commitment, we intend to assist in the creation of jobs, enhance corporate governance and serve as a financing bridge between the high growth markets in Asia to the rest of the world.

We believe that the Company will be well positioned to gain access to these Asian investment opportunities caused by the current substantial, unmet financing requirement for private enterprises, through the regional networks for deal origination to which both Adamas Finance Asia and Harmony Capital have access.

In structuring our investments, a range of instruments may be deployed to provide flexibility and protection with transactions typically structured with an identified exit path.

 

Income

In addition to providing growth opportunities for our investors we are also seeking to deliver them income. We source our income opportunities from a diverse array of geographies, instruments and asset classes across Asia including Greater China. In this way, we can offer our investors access to a balanced portfolio of the best income generating opportunities sourced by our investment manager.

investment policy

The investment manager of the Company has the flexibility to invest across Asia, across sectors and across the capital structure of companies.  Furthermore, given the long-term nature of the Company's investment horizon, a more flexible Investing Policy should enable the Manager to navigate changes in the relative attractiveness of various financing asset classes in Asia through economic cycles  and, potentially, geopolitical shifts which may increase the sovereign risk associated with specific countries relative to others within the region.