SC Lowy CEO Michel Lowy recently shared insights into his firm’s investment strategy in Asia, focusing on South Korea and India over China. The economic slowdown and geopolitical risks in China have led the investment firm, managing $1.5 billion, to explore opportunities elsewhere. With the IMF projecting growth of 2.3% for South Korea and 6.5% for India, Lowy sees better prospects in these two markets. Real estate and manufacturing are key areas for potential investments.
Lowy highlighted the attractive legal and regulatory environment in South Korea, coupled with limited foreign capital in the debt market. This creates barriers for entry but also opportunities for investors with local knowledge and relationships. The demand for borrowing in South Korea is primarily driven by real estate and industrial businesses, with a focus on refinancing construction loans and supporting mid-sized companies. Despite geopolitical uncertainties, Korea’s strategic alignment with the US and Japan gives it a strong position in the global economy.
In India, SC Lowy has been investing for about 20 years, leveraging the country’s robust economic growth and evolving insolvency regime. The firm sees opportunities in real estate and industrial sectors, with a recent investment in a credit card manufacturer. India’s manufacturing sector is poised for growth, driven by geopolitical factors and domestic demand. With high single-digit GDP growth and increasing export potential, India is seen as a viable alternative to China for manufacturing activities.
Looking ahead, Lowy emphasized the need for a strong local presence and understanding of market dynamics in Asia-Pacific’s private credit landscape. As the region accounts for a significant share of global GDP, there is a growing funding gap that asset managers can address. While Hong Kong remains SC Lowy’s headquarters, Lowy acknowledges the changing dynamics and the need to adapt to evolving business trends. Despite the challenges posed by economic uncertainties and regulatory changes, the firm remains optimistic about the investment opportunities in South Korea and India.
