Description of Business & Investing Policy
Jade Road focuses on funding growth capital to SMEs predominately in the Pan-Asia Region to meet the underserved financing needs of such enterprises across various industries. Our investment strategy consists of collateralized lending, structured finance, and strategic finance. We focus predominantly on asset backed structures to generate equity upside with credit-like downside protection.
Jade Road is supported by Harmony Capital Investors Limited.
We have elected to be regulated as a London AIM listed vehicle, under AIM Rule 26. Our common stock is publicly traded on AIM, London Stock Exchange, under the ticker symbol “JADE”.
The Board of Jade Road works together with Harmony Captial Investors Limited to execute our investment strategy.
The investment manager of the Company has the flexibility to invest across Asia, across sectors and across the capital structure of companies. Furthermore, given the long-term nature of the Company's investment horizon, a more flexible Investing Policy should enable the Manager to navigate changes in the relative attractiveness of various financing asset classes in Asia through economic cycles and, potentially, geopolitical shifts which may increase the sovereign risk associated with specific countries relative to others within the region.
The investing policy of Jade Road is the following:
- The Company has an indefinite life and is targeting both capital gains and income distributions for its Shareholders over time.
- The Company will provide equity and credit funding to companies, principally in the Pan-Asia region or with a connection to Asia. It will seek to do this by:
- providing funding directly to companies via the provision of loans or other credit instruments which may be secured against assets of the borrower or its affiliates;
- providing funding to companies to accelerate their growth, expand the scale of their business and/or to consolidate their organizational structure in preparation for a public listing. Investments could be in the form of structured equity, debt and hybrid debt securities;
- providing growth, development and acquisition capital in the form of equity or quasi-equity to companies within growth industries;
- providing funding to transactions structured around significant corporate events such as recapitalisations, debt restructurings, buybacks of shares, asset spin-offs and corporate reorganisations;
- investing in publicly traded or ‘over the counter’ traded equity or credit securities, such as preferred stock, common stock, high yield bonds, senior loans, warrants, where the market is mispricing a company’s securities and thereby offering an attractive risk adjusted return due to one-off or short term factors; and
- investing (in addition to securing co-investment rights for the Company) as a limited partner or shareholder in third party managed vehicles which have a strategy to provide credit and/or equity funding to companies in a specific industry.
- The Company will be sector agnostic in its investment activities.
- New investments will be managed actively, including through appropriate investor protections which will be negotiated on each transaction as appropriate and relevant.
- The Company will consider using debt to finance transactions on a case by case basis and may assume debt on its own balance sheet when appropriate to enhance returns to Shareholders and/or to bridge the financing needs of its investment pipeline.
- The Company may decide to dispose of or exit, partially or fully, existing investments in the Company’s portfolio where appropriate and based on the recommendations of the Investment Manager.