A long-term credit fund (e.g. infrastructure, renewable energy, real estate etc.) is another logical next step. Discussions with the banks have revealed that banks are struggling to write long term corporate loans longer than 5 years.
Kholo Long Term Credit Fund will seek to partner with the banks when pitching to clients by underwriting the longer dated tenor whilst the banks take the shorter dated tenor thus providing the client with a holistic solution and palatable weighted average tenor of loans.
Kholo Capital Investment Grade Credit Fund will target higher rated counterparties with > 90% of the fund rated at the same level or better than the sovereign. This fund will be under-weight on selected SOEs.