Digital securities marketplace ADDX has listed a private credit fund managed by Helicap Investments. Helicap Fund I is the flagship fund of the company and it is designed to promote financial inclusion in South East Asia, according to a company statement. The Fund aims to transform the way consumers and SMEs access credit. Since the launch of the Fund in 2018, it has distributed over USD $100 million while generating an annualized return of 10%.
As the Fund is a digital security, leveraging blockchain technology, it gains from improved efficiencies allowing smaller investors to participate in the offering. In contrast to traditional private fund offerings that hold minimums of $250,000, the Helicap Fund I holds a minimum of USD $10,000.
Helicap announced a strategic funding round last month where Temasek-backed international alternative asset management group Tikehau Capital joined Helicap as a shareholder.
Helicap states that it has developed a proprietary technology to evaluate the creditworthiness of more than 500 digital lenders and businesses across SEA and Oceania.
These end-borrowers are said to be underbanked individuals and companies.
Oi-Yee Choo, ADDX Chief Executive Officer, commented on the Fund:
“Microlending companies are tackling a real problem that traditional lenders have not been able to solve because they haven’t built the granular knowhow and infrastructure for it. Microlenders are putting funds in the hands of creditworthy individuals and small businesses, bringing about financial inclusion which translates into more jobs, more people having access to education and higher living standards. Helicap is on a mission to power these microlenders by providing them with lending capital. The company’s mission of improving financial access for underserved customers ties in perfectly with ADDX’s own mission of democratising the private markets. We are therefore excited to list Helicap’s flagship fund.”
Choo added that for investors who want exposure to this asset class, a fund manager’s ability to manage the risk from non-performing loans is vital.
“The technology Helicap has built to evaluate microlenders is sophisticated, ensuring microlenders that borrow from Helicap are building a sustainable business. The fund’s record of zero defaults by microlenders since its inception stands out within the space.”
ADDX, regulated by the Monetary Authority of Singapore, claims the title of Asia’s largest private market exchange.
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