Blog - IDEATE
Charismatic Debt Equity Fund Founder Bets on Listed Shares Financing
Despite buoyant stock markets around the world, the COVID-19 crisis has spelled doom for many mid-cap firms that are unable to raise cash. Into this void steps Lam Ching Ching, founder of Charismatic Debt Equity Fund (Charismatic Fund), a regulated fund focused on listed companies valued at under $1 billion. Charismatic has been able to secure impressive ROI injecting funds into cash-strapped firms across Asia.
The banking veteran boasts over two decades of a banking career with Citibank, Credit Industrial et Commercial, EFG and UBS. She climbed the corporate ladder to advise high net-worth clients on investments and credit, managing over USD1bn worth of assets.
Quality stocks selection
Lam started Charismatic Fund in 2018 when she noticed that listed companies with market capitalization below USD1b were underserved by banks. Banks had lost their lending appetite after the 2008 global financial crisis and to date, mainly focused on large and established corporations.
Concurrently, the ultra-low interest rate environment post-2008 made it difficult for investors to find attractive high yield-generating assets. With the Covid-19 pandemic, banks have become even more selective of borrowers.
Charismatic Fund thus provides stock loans to shareholders who pledge their shares as collateral. In return, its investors are compensated with attractive double-digit yields. Empowered by financial technology, it created a user-friendly online portal to streamline and accelerate the processing, allowing loan cases to be swiftly assessed and closely tracked. Investors can also access to its investments and their performance via the portal.
Tapping on her networks and expertise, Lam established a diversified portfolio of stock loans with over collateralization of stocks. She credits her years in banking for giving her a sharp eye in selecting quality stocks and doing in-depth credit assessment, resulting in two stellar years with a double-digit net return as expected, and zero rate of default by borrowers.
The future of Asian finance
In countries like Thailand, Indonesia, and Singapore, Lam foresees higher growth ahead over the next decade. Lam credits this positive outlook on the countries’ high domestic savings rates, good infrastructure, and stable political situations.
“Even with Hong Kong’s unstable political outlook, many US-listed companies with Chinese ownership have returned to dual list in Hong Kong, suggesting Hong Kong will continue to remain a leading financial hub,” She notes. This increase in variety of stocks to lend against bodes well for Charismatic Fund, as Hong Kong is their biggest market at 50%.
To aspiring women in the banking industry, the mother of four graduate children from top universities and avid ballet dancer says, “The sky is the limit. Go all out to establish a successful banking career without compromising on building a family concurrently,” emphasizing the importance of being financially independent.
凯利施向上市公司股东提供以其上市股份作抵押的直接贷款。有二十多年资深银行从业背景 的林女士在花旗银行，工商信贷银行(Credit Industrial et Commercial)，EFG和瑞银为高净值客户提供有关投资和信贷方面的建议，并曾管理价值超过10亿美金的资产。
ABOUT CHARISMATIC DEBT EQUITY FUND
Charismatic Debt Equity Fund is of two Funds with similar investment strategies in Ireland and Singapore which are regulated by the Central Bank of Ireland and the Monetary Authority of Singapore. It provides investors with investment opportunities based on ethical and responsible secured asset-backed lending to shareholders of listed companies against their listed shares. The only Fund in the market as an alternative asset class in direct lending secured against listed shares. Bloomberg Ex-UBS Banker Starts $100 Million Fund for Share-Backed Loan.