Key Takeaways
- • SC Lowy and Shinhan Capital have launched the Shinhan SC Lowy No.1 Private Debt Fund, a private debt vehicle targeting mid-yield, local currency opportunities across South Korea.
- • The fund targets asset-backed lending in what the firms describe as an underserved and asset-rich segment of the Korean market, driven by tighter bank financing and interest rate volatility.
- • Shinhan Capital contributes its Seoul-based local origination network, while SC Lowy, which manages $1.5bn (£1.1bn) according to the article, contributes global credit investing capabilities.
- • The partnership is positioned to address short-term liquidity gaps among Korean companies, with a stated emphasis on downside protection and risk-adjusted returns.
Summary
Both firms describe the strategy as focused on an "underserved and asset-rich segment of the market," with an investment approach centred on asset-backed lending. Seoul-headquartered Shinhan Capital brings its local origination network to the partnership, while SC Lowy contributes its global credit investing capabilities to execute the strategy. The article cites SC Lowy's $1.5bn (£1.1bn) of capital under management in that context.
Soo Cheon Lee, co-founder and chief investment officer of SC Lowy, said South Korea "continues to present a compelling opportunity for private credit, supported by strong corporate fundamentals but increasingly constrained traditional lending." He added that the partnership positions the firm to deploy flexible capital into high-quality opportunities while maintaining a disciplined focus on downside protection.
Young Gyoo Choi, head of the investment finance group at Shinhan Capital, said the collaboration combines Shinhan Capital's local market access with SC Lowy's global investment expertise. He said the fund is well placed to address funding gaps in the Korean market while delivering consistent, risk-adjusted returns for investors. The article does not disclose the fund's target size, fund close, or minimum commitments.
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