The latest offerings in investments, such as funds and structured products, and other notable developments.
Distressed debt and special situations investment specialist Arbitrium Capital Partners this week officially opened its doors in Sydney. It will open a Dublin structure to enable offshore investors to access the strategy, it said in a statement earlier this week.
The firm, founded by Daniel Liptak and Mukhtader Mohammed, has a fund of $300 million. The fund, which invests in illiquid loans, seeks to enhance returns through conversion to equity via warrants.
“Our investment universe comprises companies with pre-COVID revenues of $50 million to $750 million with over $100 billion in aggregate corporate debt,” Mohammed said. “Australia is in a recession for the first time in nearly 30 years. Given the decline in earnings and growing working capital challenges brought on by COVID-19, there is growing uncertainty that non-investment grade loans to Australian mid-market corporates may be at risk of default in the next six months as government fiscal measures expire.”
The organisation said that the mid-market Australian corporate sector is “underserviced” by specialist credit funds that can provide patient capital with turnaround capabilities. However, interest in corporate debt in Australia is growing, the firm said.
“The true magnitude of 2020 loan default rates are not going to crystallise until next year,” Liptak said. “The mid-market companies we’re focusing on are the engine room of [the] Australian economy, and many well-managed companies will need patient capital with a risk profile outside traditional lenders tolerances. Our model offers a lot of benefits on both sides of the table.”
The Arbitrium team is also expanding with two additional partners, it said.
Investment firm Lu International (Hong Kong) will launch the first batch of US dollar-based fund products distributed through its online investment and wealth management platform, the LU Hong Kong App.
The products are designed to provide investors with a more diversified portfolio of currency fund products catering to different risk appetites and investment needs.
The first batch of the products distributed on the LU Hong Kong App consists of five different fund products, namely: BNY Mellon Emerging Market Corporate Debt Fun; BNY Mellon Mobility Innovation Fund; BNY Mellon Long-Term Global Equity Fund; Franklin Technology Fund; and Franklin Biotechnology Discovery Fund.
The LU Hong Kong App offers a selection of diverse Hong Kong dollar-denominated funds for Hong Kong retail investors.
“LU Hong Kong has always been keeping a close eye on the global market conditions. By introducing a selection of fund products in a timely manner, we help users stay ahead of the latest investment trends to seize market opportunities,” Cai Hua, chief executive of LU Hong Kong, said.