Shoreline Capital closes Fund II at over USD300m

The fund significantly surpassed the size of Shoreline’s first fund, which secured USD178.2m of commitments in 2008.

 

The firm has already invested over one third of the new fund’s committed capital.

 

The new fund, Shoreline China Value II, received commitments from a broad investor base across North America, Europe, Asia and the Middle East. Investors include endowments, foundations, pensions, funds-of-funds, family offices and high-net-worth individuals.

 

Since the firm’s inception in 2004, Shoreline has focused on credit-related opportunities arising from the inefficiencies in China’s financial system. Such opportunities include (i) debt restructurings; (ii) non-performing loan (NPL) portfolios; (iii) structured special situations financings; and (iv) distressed private equity and real estate. Shoreline is one of only a handful of established managers specialising in such a strategy and operating locally in China.

 

Benjamin Fanger (pictured), co-founder and managing director of Shoreline Capital, says: “China’s financial system allocates capital inefficiently, leaving many good companies without financing and bad companies with too much debt. The former produces special situations opportunities while the latter gives rise to distressed debt. Now that China is facing a slowing growth rate, these types of opportunities have multiplied. Since 2004 Shoreline has established a local team to source, structure and execute such transactions in China.”

 

So far, Shoreline has invested over one third of the new fund’s committed capital in five investments, including one NPL portfolio and various special situations. Such special situations are generally asset-backed rescue financings that allow companies to bridge periods where they cannot get bank loans.

 

“The continuing inefficiencies in China’s financial system generate a healthy deal flow for Shoreline. We are excited about the opportunities,” Fanger says.