The financial and property services firm has announced forming a partnership with a Chinese advisory firm to “further enhance” its capital-raising capacity in China.
N1 Holdings (N1H) has partnered with a Beijing and Shanghai-based FuHeng Family Office Consultancy, which assists high-net-worth individuals in China invest in assets worldwide, in order to boost its capital-raising capacity in China.
The publicly listed financial and property services firm noted that it launched One Lending Fund in February this year, which provides short-term loans to small and medium-sized businesses in Australia. N1H said it continues to raise capital for the One Lending Fund, but it is also considering opportunities with pipeline investors to launch another fund.
Meanwhile, FuHeng is reportedly looking to provide its clients exposure to more asset and investment opportunities in Australia.
Commenting on the partnership, N1H executive chair and CEO Ren Hor Wong said: “FuHeng has been a major contributor to One Lending Fund in reaching the fund’s capital raise milestone. We look forward to more collaborations not just for One Lending Fund but also for other opportunities that suit our mutual investors’ appetite.”
The chief executive added: “While we have investors locally in Australia and abroad, such as Singapore and Malaysia, this partnership is critical to strengthening our capital-raising capability in China.”
Earlier in May, N1H disclosed to the Australian Securities Exchange that it had successfully raised $10 million for commercial lending activities, $6.2 million of which was raised by One Lending Fund, and $3.8 million from the firm’s balance sheet and committed capital.”
Mr Wong at the time revealed that N1H is aiming to raise $25 million for One Lending Fund.
“At the moment, demand for loans exceeds the availability of capital, and we believe we can increase the volume of loans we write to $25 million without significantly increasing N1H’s operational costs,” he said in May.
“We have developed the infrastructure and internal systems to be able to deploy more capital while maintaining appropriate risk control mechanisms.”
The CEO continued: “We strive to be a careful and responsible SME lender. Our average [loan-to-value ratio] is below 60 per cent and, to date, the fund has not suffered any defaults.”