We focus on what we do best – Chinese NPLs and structured credit investments, which are unique opportunities resulting from both the natural progression of the credit cycle, and the inefficient nature of a developing financial system. The skill sets and tools required for such investments are proprietary and present a high entry-barrier to other hopeful market entrants. Our collective years of experience allow us to be a leader in these markets and continue to deliver attractive results.
ShoreVest believes it can deliver consistent returns both in favorable and disadvantageous credit environments. To accomplish this, ShoreVest adheres to its investment philosophy of underwriting each investment with a focus on the most feasible workout scenario in sub-optimal conditions. For instance, we make a conscious effort not to price future growth potential into any NPL portfolio or collateral valuation. ShoreVest’s decade long track record over several Chinese credit cycles is proof that this principle has served the investments well.
To increase the team’s ability to foresee likely exit outcomes and to remain positioned to realize the best possible outcome for each investment, ShoreVest is driven to find ways to increase the proprietary networks, knowledge and tools at our disposal. Over these many years, ShoreVest’s team members continue to accumulate ever-increasing experience enforcing credit in Chinese courts; more connections with information sources in the space; more resources in dealing with distressed situations (be it through restructurings, sales to downstream buyers or knowledge about structuring safer investments); and more deal sourcing connections and creative exit channels within the banking and financial industries in China. This hard earned know-how is being refined and reinforced every day as the team continues to be active in this space.
At ShoreVest, we also believe in the merits and the necessity of leveraging external resources to the benefit of our investments. The idiosyncrasy of each locality in China demands significant local knowledge to execute investments. To scale ShoreVest’s bandwidth and knowledge, having external parties that contribute to deal sourcing, underwriting, due diligence, and workouts has proven a successful approach. ShoreVest team members have been building this deal sourcing and investment execution network for over a decade. We now have a significant network of such trusted partners, spanning across a majority of the most economically viable regions in China.