We are Margin Stock Loans Specialists
Origins
We provide liquidity to shareholders of listed equities and offer an investment opportunity to accredited investors and institutions to invest in fully secured stock loans.
Having experienced both financial crisis in 1998 and 2008, founder of Charismatic Capital Ltd and a former private banker, Lam Ching Ching detected a niche opportunity. Hence, in 2014, she assembled a team and started originating and executing loans secured against globally listed equities with Asian focus.
Milestones
- 02/2019 - First Irish Fund was approved by Central Bank of Ireland as Private Debt Fund with target size of USD250m.
- 09/2019 - Fund was launched and loans executed with investments from investors comprising ultra high net worth individuals and Family Offices.
- 01/2020 - Hard capital commitment from investors rose to USD 600m.
- 03/2021 - Due to strong demand from Asian investors and Singapore’s good judicial system and benefits, being the Founder, Ms Lam decided to establish another similar fund - Charismatic Debt Equity Fund.
- 07/2021 - As at end June 2022, performance is +13.33% (annualized).
- 12/2023 - As at end Dec 2023, performance was +14.65% (annualized).
- 05/2024 - set up Charismatic Private Credit Fund to facilitate huge sized stock loans and block trades secured against premium quality listed shares.
- 06/2024 - As at end June 2024, performance was +11.9% (annualized).
Our Competitive Advantage
Private lenders in Asia in this financing space are small and fragmented as majority are brokers and non-licensed and non-regulated private companies. As they have either meagre capital or limited balance sheet, they could only offer the Sale and Repurchase lending model which entails change of share ownership. Hence, they do not appeal to the borrowers in general.
As borrowers are typically majority shareholders or founders of listed companies, they prefer not the transfer their share ownership to the lender for the following reasons:
- Reduction of the burden of having to report consecutive sell and buy back transactions to the stock exchange for short term loan facilities.
- Retention of voting rights and dividend payouts.
Therefore, borrowers are willing to pay a premium to enjoy the above stated benefits.
As borrowers turn to margin loan borrowing (without the transfer of share ownership), Charismatic differentiates itself strongly from the competition, being both regulated and with strong balance sheet. Henceforth, it will be able to sustain its double digit loan pricing using the financing business model that is in demand.
News about us
The Edge Singapore
Former Banker founded Charismatic Capital to offer stock loan financing to underserved companies.