SC Lowy Pivots to South Korea and India Amidst China's Economic Woes

Amidst China's economic slowdown and geopolitical uncertainties, SC Lowy CEO Michel Lowy shifts focus to South Korea and India, attracted by their strong growth prospects and favorable investment climates. The firm, managing $1.5 billion, identifies opportunities in real estate and manufacturing, particularly in South Korea's limited foreign capital debt market and India's robust economic growth and evolving insolvency regime.

SC Lowy Shifts Focus from China to South Korea and India Amid Economic Challenges

In a strategic move driven by China's economic slowdown and geopolitical risks, SC Lowy, an investment firm managing $1.5 billion, has redirected its investment strategy towards South Korea and India.

South Korea: A Promising Market with Attractive Legal Framework

Michel Lowy, CEO of SC Lowy, highlighted the allure of South Korea's well-established legal and regulatory environment, which provides clarity and stability for investors. Moreover, the country's limited foreign capital in the debt market presents barriers to entry but also creates opportunities for investors with local knowledge and connections.

The demand for borrowing in South Korea is primarily fueled by real estate and industrial businesses, with an emphasis on refinancing construction loans and providing support to mid-sized companies. Despite geopolitical uncertainties, South Korea's strategic alignment with the United States and Japan enhances its global economic position.

India: Robust Growth and Evolving Regulatory Landscape

SC Lowy has maintained a presence in India for approximately 20 years, capitalizing on the country's robust economic growth and evolving insolvency regime. The firm identifies opportunities in real estate and industrial sectors, including a recent investment in a credit card manufacturer.

India's manufacturing sector is poised for expansion, driven by geopolitical factors and increasing domestic demand. With high single-digit GDP growth and expanding export potential, India is emerging as a viable alternative to China for manufacturing activities.

Need for Local Presence and Understanding

Lowy emphasized the paramount importance of a strong local presence and a thorough understanding of market dynamics in the Asia-Pacific region's private credit landscape. As the region contributes a significant portion of global GDP, there is a growing funding gap that asset managers can potentially address.

While SC Lowy's headquarters remains in Hong Kong, Lowy recognizes the changing dynamics and the necessity to adapt to evolving business trends. Despite the challenges presented by economic uncertainties and regulatory changes, the firm remains optimistic about the investment opportunities in South Korea and India.

Conclusion

SC Lowy's shift in focus towards South Korea and India reflects the evolving investment landscape in Asia. The firm's strategic approach, centered around local presence and market understanding, positions it to capitalize on the growth potential and opportunities these markets present.