Interview with Lam Ching Ching from Charismatic Capital Ltd.
Charismatic Capital Ltd provides investors with investment opportunities based on ethical and responsible secured asset backed lending to major shareholders of listed companies.
Personal track record
Spanning a 25-year banking career, within which half was in Private Banking in several European and Swiss Banks such as Credit Industriel et Commercial, EFG & UBS, I have honed skills abundantly in investments, credit and marketing. In addition, I have built a wide and strong network in Asia, China and London comprising Bankers, financial intermediaries, investment corporates, family offices as well as financial institutions.
The current opportunity in alternative investment: Stock lending
Due to Basel III and over-regulation, financial institutions have progressively shunned traditional lending since the last financial crisis. As such, many founders/shareholders of listed companies are faced with little or no option to monetise their shares.
Henceforth, since 2014, I established a family office and built a team to focus on stock lending from scratch. We lend only against listed stocks mostly to major shareholders of the listed companies mainly in Asia. Due to my network that frequently refers high quality deal flows, I not only consistently introduce these stock loan cases but also actively involved in the credit and analysis of these loans.
Charismatic Debt Equity Fund
Based on Asian market capitalisation alone, it is estimated to be over USD50 trillion. Banks and broking houses are currently no longer interested to finance listed companies’ stocks with less than USD 500Mn market capitalisation.
Therefore, I have ventured out on my own now to specialise on stock lending catering to this niche market that comprises listed companies with market capitalisation between USD 100Mn to USD 500Mn. Focus markets are those in Hong Kong, Singapore, Indonesia, Thailand & Europe.
Borrowers normally resort to stock financing as selling their stocks outright in the market generally creates unnecessary attention and negativity to the public. They usually use the loan proceeds constructively to enhance the cash flow of their listed companies, embark on acquisitions or expand their operations etc.
Stock lending is well secured with not more than 50% lending value generally over a 3-year period. Risk mechanisms include tight margin calls and strict adherence to loan interest repayments. They are further enhanced via implementation of world checks on the borrowers as well as embarking on smart technology to monitor the loans daily. In addition, I have a capable team who assists me diligently in stock loans execution as well as a group of regulated business partners to facilitate the loans.
Potential returns are attractive in the high tens as loan rates are priced on the average between 10% to 15% pa.
Based on personal balance sheet coupled with those from international banks, I have positioned my lending entity well and I am confident to become one of the biggest private lenders in the market within the next 3 years.
Last, but not least, in lieu of my strong network within the financial realm, I’ve managed to invite a group of high profile people to be senior advisors to my fund. They comprise ex fund manager, ambassador, ex senior investment banker, entrepreneur related to Stanley Ho of Macau and Alibaba as well as a senior consultant who once was an adviser to the Bank of England and a highly sought after hedge fund manager.
In conclusion, I’m sincerely seeking alliance with investors who are keen to partner with me in this lending mandate, not only to partake in profit sharing but also together, as partners who, like me, can see this great opportunity to grow in leaps and bounds. Hence forth, Charismatic Debt Equity Fund aims for USD 200Mn. It shall be governed by a solid and regulated structure in Europe which will be run and advised by reputable and credible parties.