Helicap is a fintech investment firm specialising in the alternative lending space in Asia-Pacific. We help people improve their livelihoods by driving financial inclusion and enabling our partner platforms to transform the way consumers and SMEs access credit today.
Alternative lending is a broad term used to describe the wide range of loan options available to consumers and business owners outside of a traditional bank loan. Alternative lenders include P2P lending platforms, licensed balance sheet lenders, microfinance institutions, leasing companies and other traditional non-bank financial institutions. Most of them have developed underwriting processes, technology and distribution channels that allows them to overcome the traditional barriers faced by banks in financing underserved individuals and SMEs.
- Access to a best-in-class alternative lending portfolio leveraging from Helicap’s deep expertise in the sector, origination flow and data-driven scorecard model
- Attractive returns with recurring cash flows built on a pool of diversified and structured loans offering a low correlation to other traditional asset classes
- Opportunity to promote financial inclusion and social impact within communities in Southeast Asia and Australia
- Access to scalable and responsible debt financing, from small to large ticket sizes, allowing originators to focus on perfecting their credit underwriting capabilities and growing their loan volumes
- A long-term and specialized partner who speaks the same language as its originators, moves fast and who will develop their businesses by contributing and sharing industry best practices
- A validation of their business model and an additional funding source benefiting all the originator’ stakeholders
It is an emerging industry that uses technology to compete with traditional financial methods in the delivery of financial services. At Helicap, we use a proprietary technology stack to analyse data from originators and enhance our investment process.
The Asia Pacific region is one of the most rapidly developing regions in the world. Yet the majority of its population has difficulty accessing credit. According to KPMG, there is a huge gap in banking penetration with around 438 million unbanked individuals. Additionally, according to IFC, there are 36M MSMEs in Southeast Asia and Australia which currently face a credit gap of US$ 550bn.
It is a method of debt financing that enables a company to borrow money and individuals to lend money without using a conventional financial institution as an intermediary.
Loan origination is the process by which a borrower applies for a new loan, and a lender processes that application.
Our subsidiary, Helicap Investments Pte. Ltd. is registered with the Monetary Authority of Singapore (MAS) to operate as a registered fund management company (RFMC) under the Securities and Futures (Licensing and Conduct of Business) Regulations.
Our net distribution target is 1.75%-3% quarterly.
The definition of an accredited investor can be found on AGC’s website.
Helicap can only deal with the following qualified investors in relation to its RFMC status:
- accredited investors, as defined in section 4A of the SFA;
- institutional investor, as defined in section 4A of the SFA, other than a collective investment scheme;
- a collective investment scheme or closed-end fund, the units of which are the subject of an offer or invitation for subscription or purchase made only to accredited investors, or investors in an equivalent class under the laws of the country or territory in which the offer or invitation is made, or institutional investors or both;
- a limited partnership, where the limited partners comprise solely of accredited investors or investors in an equivalent class under the laws of the country or territory in which the partnership is formed, or institutional investors or both;
- an investment professional employed by Helicap or an entity or trust that is related to Helicap and is in the business of fund management.
Helicap currently has invested in 8 originators. Their end-borrowers are based in Singapore, Indonesia, Cambodia and Philippines.
One of the platforms we have invested in has made it to the list of 100 Leading Fintech Firms Promoting Financial Inclusion in IFC’s Financial Inclusion in the Digital Age report.
Originators are filtered out using a stringent set of screening criteria, such as regulatory non-compliance, predatory pricing, unethical practices and adverse records (winding up, bankruptcy, litigation etc.). For qualifying originators, we take a rigorous, data-based due diligence approach encompassing various factors, including business model, underwriting process, risk management capabilities, financial performance, portfolio quality and track record. Originators are also scored and assigned a credit rating reflecting their overall repayment ability based on operational, credit and financial risk factors. Ultimately, the originator’s capacity to meet its financial commitments must be assessed to be strong, and able to withstand adverse economic or business conditions.
We prefer USD, but we can also consider other major currencies subject to discussion.
Please contact your tax adviser on tax issues.
We start the due diligence process by signing an NDA that protects both us and our partners. The due diligence process takes one to three months. A primary list of required documents will be sent to you to initiate the due diligence process.
Helicap currently focuses on Asia Pacific.
We prefer USD but we can also consider other currencies, subject to discussion.
It will vary depending on a mutual agreement between the originator and Helicap, ranging from 6 months to 2 years
According to the Personal Data Protection Act 2012 (PDPA), your data will be held securely and will not be disclosed without prior permission from you.
At minimum, Helicap will request for monthly updates on your loanbook and key financial metrics.