Run by VI Asset Management, the VI Asia Private Credit Fund is an investment vehicle that concentrates on financing options offering to small- and medium-sized businesses within the Asia-Pacific area.
The fund targets to help SMEs that are overlooked or deprived by conventional financing avenues.
This post will delve into Vi Asset Management’s background, fund details, as well as advantages and disadvantages of investing in private credit overall.
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Some of the facts might change from the time of writing, and nothing written here is formal advice. So, potential investors shouldn’t invest or decide not to invest based on this VI Asia Private Credit Fund review alone.
For updated guidance, please contact me.
What is VI Asset Management?
The company is an asset management business that’s also called VIAM for short.
It is well-represented in important Asian markets, such as South Korea, Singapore, and Hong Kong.
VI Asset Management’s main investment focus is on SMEs. It wants to invest in companies that are financially secure, well-run, and have room to grow.
VI Asia Private Credit Fund LP Overview
The fund eyes SMEs with EBITDA (earnings before interest, taxes, depreciation, and amortisation) of between 5 million USD and 35 million USD at the time of investment.
VI Asia Private Credit (VIAPC) protects the capital invested through solid collateral and security protocols. It makes sure investments are secured, so they only lend when everything is in place.
VIAM wants to produce high, consistent profits even when markets are unpredictable.
Pros and cons of Private Credit Fund Investment
Investors seeking to have exposure to Asia’s expanding private credit market, with a particular emphasis on SMEs, will find the VI Asia Private Credit Fund to be an enticing prospect.
This emphasis on underrepresented markets may result in special growth and investment opportunities.
image by Sebastian V
Nonetheless, before making a financial commitment, investors ought to thoroughly balance the advantages of private credit investments against the disadvantages.
Typically, private credit investments lack a quickly accessible market for pre-maturity sales, which makes them illiquid.
Also, the biggest risk when it comes to private lending is the potential for loan default and loss of money.
While such investments come with high interest rates, the opportunity might be riskier than what investors are prepared for.
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