Charismatic Capital Founder Bets on Listed Shares Financing


SINGAPORE
Media OutReach – 30
July 2020 – Despite buoyant stock markets around the world, the COVID-19 crisis
has spelled doom for many mid-cap firms that are unable to raise cash. Into
this void steps Lam Ching Ching, CEO of Charismatic Capital, an investment firm
focused on listed companies valued at under $1 billion. Charismatic has been
able to secure impressive ROI injecting funds into cash-strapped firms across
Asia.

 

Lam is Founder and Chief Investment Officer of
Charismatic Capital, the investment manager to Charismatic Debt Equity Fund, a direct
lender to shareholders
of listed companies secured against their listed
shares. The banking veteran boasts over two decades of a banking career with Citibank,
Credit Industrial et Commercial, EFG and UBS. She climbed the corporate ladder
to advise high net-worth clients on investments and credit, managing over USD1bn
worth of assets.

 

Quality stocks selection

 

Lam started Charismatic Capital in 2015 when she
noticed that listed companies with market capitalization below USD1b were
underserved by banks. Banks had lost their lending appetite after the 2008
global financial crisis and to date, mainly focused on large and established
corporations.

 

Concurrently, the ultra-low interest rate environment
post-2008 made it difficult for investors to find attractive high yield-generating
assets. With the Covid-19 pandemic, banks have become even more selective of
borrowers.

 

Charismatic Capital thus provides stock loans to
shareholders who pledge their shares as collateral. In return, its investors
are compensated with attractive double-digit yields. Empowered by financial technology,
it created a user-friendly online portal to streamline and accelerate the
processing, allowing loan cases to be swiftly assessed and closely tracked.
Investors can also access to its investments and their performance via the
portal.

 

Tapping on her networks and expertise, Lam established
a diversified portfolio of stock loans with over collateralization of stocks. She
credits her years in banking for giving her a sharp eye in selecting quality stocks
and doing in-depth credit assessment, resulting in two stellar years with a double-digit
net return as expected, and zero rate of default by borrowers.

 

The future of Asian finance

 

In countries like Thailand, Indonesia, and Singapore, Lam
foresees higher growth ahead over the next decade. Lam credits this positive
outlook on the countries’ high domestic savings rates, good infrastructure, and
stable political situations.

 

“Even with Hong Kong’s unstable political outlook, many
US-listed companies with Chinese ownership have returned to dual list in Hong
Kong, suggesting Hong Kong will continue to remain a leading financial hub,”
She notes. This increase in variety of stocks to lend against bodes well for
Charismatic Capital, as Hong Kong is their biggest market at 50%.

 

To aspiring women in the banking industry, the mother
of four graduate children and the avid ballet dancer says, “The sky is the
limit. Go all out to establish a successful banking career without compromising
on building a family concurrently,” emphasizing the importance of being
financially independent.

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