P2P lending platformValidus Capital reopens the fund with Singapore-based independent asset management and family office advisory services firm Lighthouse Canton

Singapore’s SME lending platform Validus Capital (Validus) and independent asset management and family office advisory services firm Lighthouse Canton have jointly announced the reopening of LCV Trade Finance Fund, bringing the additional capacity of S$20 million (US$14.8 million).

Both companies claimed that this is a part of the’ efforts to provide business financing to small and medium-sized businesses, particularly in the manufacturing, construction, and marine sectors.

At the time being, only existing Lighthouse Canton clients can invest in the Fund ahead of June 2019. After that locked period, the fund will be open to new investors.

“Leveraging our expertise in SME lending and using data and technology to drive more informed and responsible lending decisions, we hope to accelerate financial inclusion and transform SME lending in Southeast Asia,” said Nikhilesh Goel, Co-founder & COO of Validus.

The Fund was launched in June 2018 and raised S$20 million (US$14.8 million) targeting investors such as accredited UHNWIs, family offices, and institutions. It’s invested in trade finance facilities for Singaporean SMEs who are suppliers of government-linked companies (GLCs) and large corporations within nine months from launch.

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The Fund posted annualised net investment returns of 6.38 per cent and 7.53 per cent for the SGD share class and USD hedged share class respectively as of end-February 2019.

“Many investors are looking at ways to diversify their investment portfolio, capitalising on Singapore’s and Asia’s strong economic growth. The investment merits of supply chain-focused trade finance funds as they provide high liquidity, good premiums over cash, and a predictable risk profile for fixed income investors,” said Sanket Sinha, Director at Lighthouse Canton.

Sinha further added that the partnership has offered a new asset class for Lighthouse Canton’s investors, enabling them to invest in Singapore’s largest P2P lending platform.

Validus provides an online marketplace powered by a proprietary platform which uses a cloud infrastructure as a delivery mechanism. Using its data analytics, machine learning, and artificial intelligence (AI) expertise, Validus seeks to help minimise fees and logistical hurdles while enabling more informed and responsible lending decisions.

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The company recently raised S$20.5 million (US$15.2 million) in an oversubscribed Series B funding round in February 2019 led by Dutch public-private development bank FMO. Validus said that it’s currently going through the application process to start operations in Indonesia and preparing Vietnam’s expansion.
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