In this fireside chat, Michel Lowy, the co-founder and CEO of SC Lowy, discusses the outlook for private debt investors in 2024. The conversation covers a range of topics, including Lowy’s career background, the main countries where SC Lowy invests in Asia, and the potential for these markets in 2024-2025.

SC Lowy primarily invests in Korea, India, and Australia due to their cyclical market trends. Lowy explains the unique characteristics of each market, such as Korea’s strong insolvency regime and language barriers, India’s family-driven economy and lack of liquidity for mid-cap enterprises, and Australia’s developed jurisdiction and occasional opportunistic opportunities.

Lowy also discusses the evolution of SC Lowy, highlighting how the company has shifted from investing in distressed assets to developing a private practice. He emphasizes the importance of having local teams in each market to navigate different economic cycles, languages, and ways of doing business.

Looking ahead, Lowy expects the private debt market in Asia to grow significantly, with more players entering the market and the size of the market potentially increasing tenfold or even fiftyfold. He also anticipates that SC Lowy will continue to grow organically and maintain strong relationships with its stakeholders, including the companies it works with, its LPs, and its employees.

In terms of technology’s impact on the private debt industry, Lowy sees the most significant impact on the back office and deal monitoring side of the business. He believes technology can help improve communication between SC Lowy’s various local offices and enhance the company’s infrastructure.

Overall, this fireside chat provides valuable insights into the private debt market in Asia and the strategies and outlook of SC Lowy.

Timestamps:

00:08: Introduction
00:41: Michel Lowy’s Background
01:24: Investing in Asia
03:05: Focus on Korea
04:43: Challenges and Opportunities in India
07:38: Opportunities in Australia, Hong Kong, and Singapore
08:52: Transforming the Traditional Banking Model
10:04: Terms and Structure of Capital
12:05: Deal Sourcing and Human Intensity
13:26: Evolution of the company
15:13: Company’s Path and Future Expectations
19:18: The Future of Private Debt in Asia Pacific
21:47: Growth and Partnerships
23:02: Hiring and Business Development
25:10: Impact of Technology
25:58: Technology and Deal Monitoring
26:24: Human-led Due Diligence
27:11: Evolution of Business Strategies
28:47: Role in Disrupting the Banking System
29:11: Democratization of Private Assets
30:50: Future Aspirations