NEW YORK, Sept. 13, 2023 /PRNewswire/ -- After defying market volatilities and achieving outsized returns in 2022, Hi2 Investment Management LLC (Hi2 Cayman Fund SPC - Series B SP) has been selected as the winner of Best Overall Credit Fund category by the users of Hedgeweek and Private Equity Wire.
Powered by Hedgeweek, a leading information provider for the hedge fund community, and with fund manager data provided by Bloomberg, the Award rewards fund performance and service provider excellence within hedge fund emerging managers. Winners are recommended by Bloomberg based on 2022 Calendar Year fund performance and voted by the hedge fund community. 7,800 votes were cast in total with 39% of those coming from Managers, 22% Allocators and 39% from Service Providers.
Hi2 Global Private Credit Fund invests in global private credit strategies, including consumer installment loans, auto inventory backed loans, and short-term cash loans, providing a long-term and diversified fixed income portfolio.
In 2022, extremely high prices and an overall strong economy led the Federal Reserve to take drastic measures, implementing a rapid succession of rate increases unseen since the early 1980s.
Despite the market downturn, the Fund was able to successfully achieve favorable returns given its niche focus on high growth consumer sectors in emerging markets. This is achieved through the strategy of catching the tailwind of high technology penetration levels in emerging markets in Southeast Asia, Sub-Saharan Africa, and Latin America.
According to Jerry Wang, Founder and CEO of Hi2 Global, "The Fund structures notes to protect our investments, which contributes to consistent returns for our investors."
Despite volatilities in the stock market, redemptions reducing liquidity, pressure in the private credit market and investors seeking risk premium, the Fund's capital flow turned positive by the end of 2022 and AUM has been on a steady increase in 2023. The Fund is backed by collateral, guarantee and subordination structure, and provides stable yield, high liquidity and low correlation with traditional asset classes.
In addition to its focus on high-yield, low risk returns, Hi2 Global is committed to seeking investment opportunities with embedded ESG themes, such as financial inclusion, sustainable consumption, healthcare innovation and environmental protection.
As a firm focused on financial inclusion in emerging markets, Hi2 Global is a proud signatory of the Principles of Responsible Investment (PRI).
"We believe in the power of financial inclusion to promote social inclusion and mobility," said Wang. "Through our direct lending programs, we lend to Small Business Owners, especially those with female founders and those that enable job creation in low-income communities."
Hi2 Global adheres to the Principles of Responsible Investment and is committed to long-term social and environmental impacts.
Heading into the last quarter of 2023, the Fund aims to continuously seek long-term high returns opportunities that benefit investors, the environment and the global economy.
With capital consistently flowing into the emerging market consumer credit sector, the Fund will tap into growing opportunities in markets such as Egypt, Pakistan, and Colombia to diversity geopolitical risk.
According to Wang, the Fund is also looking into expanding into other business models such as factoring and payroll bank lending to diversify its investments and reduce risk.
Looking forward, the firm plans to continue investing in its team, technology, as well as building up its back office in risk management and compliance. The Fund will continue its focus on consumer credit while promoting financial inclusion in emerging markets.
