FINANCING NEED
Credit dislocation
Changes in traditional and non-bank lending have created financing and restructuring needs across vast parts of China’s credit market.
Strategy
Credit solutions for complex situations
ShoreVest provides asset-backed credit solutions to borrowers and financial institutions across China.
The approach draws on underwriting and resolution experience built in China since 2004.
- UNDERWRITING FOCUS
- Margin of safety at entry
- STRATEGIES
- Asset-backed lending · Asset restructuring · Debt resolution
- CORE CONSIDERATIONS
- Claim priority · enforceability · exit routes
The opportunity
A large and complex credit market
Participation requires familiarity with China’s regulatory framework, creditor landscape, enforcement processes and local resolution mechanisms.
2ndLargest credit market globally
~US$5TShadow banking contraction
~US$2TNon-performing loans recognized over the last five years
<3%Foreign fund manager participation
Market figures are approximate, drawn from third-party estimates, and subject to change.
Why this persists
MARKET ACCESS
Limited familiarity
Many participants in global capital markets have limited experience with China’s regulatory, enforcement and creditor landscape, favoring platforms with local relationships and execution capabilities built over time.
EXECUTION
Asset-level complexity
Outcomes depend on documentation, control rights, asset-level diligence and the ability to execute through local processes.
Three strategies
One investment discipline
Deployment shifts with the opportunity set as market conditions and pricing change.
Common underwriting considerations
Margin of safety
Entry terms are assessed against downside cases and expected recovery value.
Legal and structural position
Claim priority, documentation and enforceability are reviewed for each situation.
Exit routes
Potential repayment, restructuring and resolution routes are considered before capital is committed.
Risk management and downside analysis are applied across investments, at both the transaction and portfolio level.
Asset-backed lending
Asset-backed financing for companies with identifiable collateral and financing needs, including bridge, refinancing and acquisition situations.
Asset restructuring
Capital for situations involving viable assets and challenged balance sheets, including restructurings and deep value acquisitions.
Debt resolution
Credit solutions for financial institutions and other claim holders seeking to transfer, restructure or resolve distressed credit, including non-performing loans.
Credit solutions & sourcing
The trusted provider of credit solutions
ShoreVest works with banks, asset-management companies, corporate borrowers, legal advisers and servicing counterparties across China.
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Financial institutions
Banks and asset-management companies work with ShoreVest to finance, restructure and resolve credit, and are a primary source of opportunities across the platform.
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Corporate borrowers
ShoreVest works with companies seeking asset-backed financing or restructuring solutions appropriate to their circumstances.
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Local presence
Touchpoints across China’s major commercial centers, together with legal, servicing and asset-management capabilities, support diligence, structuring and implementation.
Disclosures
Past performance is not indicative of future results. All investments involve risk, including possible loss of principal. Information on this page reflects ShoreVest’s current investment approach and is subject to change without notice. Nothing on this page constitutes an offer to sell or a solicitation to buy any security or investment product.