Our Businesses
PDF(Private Debt Fund) adopts real-estate secured lending strategy to present unique solutions
for investor group looking for attractive yields through private investment vehicles
for investor group looking for attractive yields through private investment vehicles
Pureun Partners Asset Management
Stability of PDF Strategy
1. Achieve return from stable real estate mortgage loans
- → The highest risk of real estate mortgage loan is caused by the high LTV (Loan To Value)
- → We mitigate the risk by lowering LTV ratio as well as joint guarantee and credit enhancement
2. Achieve return by hedge against presales risk
[1] Hedge against repayment risk with low exit presales ratio
- → Past: There was a repayment risk due to high exit presales ratio
- → Present: Security of stability through lowering the exit presale ratio and reinforcing the joint guarantee
[2] Hedge against presales Risk
- → Past: Poor presale may involve insolvency of the developer and inability to collect the fund
- → Present: Presale risk is hedged with the financial resources of the construction cost on the basis of the presale land trust, and even at the time of shortage of presales, the presale risk will be hedged by securing the required project cost
[3] Hedge against completion Risk
- → Past: At the time of insolvency and/or loss of the constructor, loss would be incurred due to inability to proceed with the construction
- → Present: Completion risk is hedged by securing the required project cost and commitment of guaranteed completion based on the basis of the managed land trust
3. Existing PF loans possess high probability of default due to unexpected deterioration of presales
- → Present: Completion risk is hedged by securing the required project cost by using the structured loans not affected by presale risk
Management Strategy
A diversified portfolio, pursuing Alpha from real estate related lending transactions
- As opposed to existing financial institution, our flexible PDF strategy has no restriction in lending structure, commission and interest rates etc. under Korean Capital Markets Act
- Investing in secured loan as well as structured loan can prioritize stability and high chance of principal repayment
- A diversified loan portfolio can hedge against default risk from lending a single large