CoAssets Limited (ASX: CA8), a Singapore based Fintech that focuses on providing funding solutions for small to medium‐sized enterprises (SMEs), has announced that their CoAssets Stirling Fort Absolute Return Fund Pte. Ltd (CASFAR) has entered into an agreement with BMFA Group to invest USD $35 million. The CASFAR fund was launched by CoAssets on 26 July 2018.
Getty Goh, CEO and co-founder in CoAssets, said they were humbled by the decision by BMFA to invest in the Fund.
“The US$25million investment will allow us to invest in more high yielding securitized deals that will in turn generate good returns for our investors and the Company. Separately, this is a clear indication that investors continue to believe in CoAssets and we have seen that many of them are enthused by the recent good results that the Group has shown. With this investment, the total AUM for CASFAR will be about S$40million ‐ this is a very good start, considering that the fund was only launched 2 months ago. On the back of this, the team believes that they will be able to build on this momentum to bring CASFAR as well as CoAssets to greater heights.”
Incorporated in January 2018, BMFA Group is described as an independent financial advisory company serving high net worth executives, professionals, and entrepreneurs in Southeast Asia. BMFA provides a spectrum of services including commercial loans, capital funding, insurance, wealth management, estate planning, and other financial services.
CoAssets says the US$25 million will be invested in 11 tranches of at least US$2m each up to October 2019, in return for which BMFA Group will be issued Class B Preference shares in CASFAR.
The new investment is said to enable the Fund to pursue its objective of collateralised lending by engaging in SME bridging loans with tenures that are generally less than 12 months. SMEs who take up these loans will pledge hard assets or allow the fund to have a charge over earnings or contract receivables. The investment will take CASFAR’s Asset under Management to approximately S$40 million.