London-based Channel Capital Advisors is focusing on onboarding investors from Western Europe, the UK, the US and the GCC to its Corniche I Shariah compliant asset-backed private credit strategy while exploring potential new areas of investments which would comply with ESG principles such as solar and data centers. VINEETA TAN has the story.
Speaking to IFN, Walter Gontarek, CEO and the chairman of Channel, shared that the company is finding exciting opportunities in the innovation economy, life sciences, software development and technology.
While artificial intelligence is the flavor of the month, Walter explained that the firm’s technology focus extends beyond fads.
“It could actually be technology that has been around for five or 10 years, but we use it in new ways. For example, one of our clients uses smart contracts to locate receivables in the global telecom market. It would take a lot of work for human beings to do this but smart contracts can do it a lot faster and we can fund more accurately and quicker.”
The alternative investment fund manager launched Corniche I last month in response to growing demand for Islamic investments. Operating for almost two decades, Channel officially entered the Islamic space in 2019 with a trade finance fund, prompted by a client seeking Shariah compliant strategies.
Since then, the company has more than doubled its GCC exposure to about 13%, according to Walter. Since 2015, Channel has closed over US$1 billion in cumulative lending in the GCC, with a particular focus on the UAE.
Channel’s latest Islamic private credit strategy focuses on the origination of short-term asset-backed credit facilities. The strategy incorporates several protective features including repayment from segregated collateral pools, floating rate pricing, pull-to-par dynamics and self-liquidating features for primary repayment sources.
“The investing environment is ripe with opportunities but at the same time, the borrowing costs are high and that can impact the quality of company earnings,” explained Walter. “It is a great time to be investing but it’s also a time you need to be careful.”
This is an excerpt of an interview with Walter Gontarek of Channel Capital Advisors. For the full discussion on the rise of Islamic private credit strategies, log on to IFN Podcast.
