Alternative asset manager SC Lowy and specialised credit finance company Shinhan Capital have launched a private debt fund targeting mid-yield, local currency opportunities across South Korea.
According to the firms, the Shinhan SC Lowy No.1 Private Debt Fund is aimed at capitalising on the increasing dislocation in South Korea’s lending markets, where tighter bank financing and interest rate volatility have created a growing pool of companies facing short-term liquidity constraints.
Both SC Lowy and Shinhan Capital said the strategy focuses on an “underserved and asset-rich segment of the market”, with an investment approach centred on asset-backed lending.
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“South Korea continues to present a compelling opportunity for private credit, supported by strong corporate fundamentals but increasingly constrained traditional lending,” said Soo Cheon Lee, co-founder and chief investment officer of SC Lowy. “Through this partnership, we are well-positioned to deploy flexible capital into high-quality opportunities while maintaining a disciplined focus on downside protection.”
According to the firms, Seoul-headquartered Shinhan Capital brings its local origination network to the partnership, while $1.5bn (£1.1bn) SC Lowy contributes global credit investing capabilities to execute the strategy.
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“This collaboration combines Shinhan Capital’s deep local market access with SC Lowy’s global investment expertise,” Young Gyoo Choi, head of investment finance group at Shinhan Capital said. “We believe the fund is well placed to address funding gaps in the Korean market while delivering consistent, risk-adjusted returns for investors.”
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