This article was published on Nov. 6, 2025, at 4:11 p.m. on the ChosunBiz MoneyMove website.
SC Lowy, a global investment firm headquartered in Hong Kong, is forming its first Korea-dedicated loan fund. After creating a Korean real estate loan fund last year, it is now creating a general private loan fund as it seeks to make a full-scale entry into the Korean market.
According to the investment banking industry on the 6th, SC Lowy will team up with Shinhan Capital to create a Korea-dedicated loan fund worth 100 billion won. Its main purpose is to make mid-rate collateralized loans to various sectors.
SC Lowy and Shinhan Capital will jointly operate a single fund. About half of it, roughly 60 billion won, is expected to be invested by affiliates of Shinhan Financial Group, though the amount has not yet been finalized.
SC Lowy was founded by former Deutsche Bank executive Michael Lowy, CEO, and CIO Lee Su-cheon in 2009. It primarily invests outside the United States, focusing on the Asia-Pacific region. Its main areas are private credit and special situations.
Special situations funds invest in unique circumstances such as corporate restructuring, financial crises, management disputes, asset sales, or receivership risks, unlike traditional buyouts (acquisition of control) or minority equity investments, to generate returns. Many are structured as short-term investments intended to be exited within one to three years rather than deeply intervening in corporate management. The risks are high, but targeted internal rates of return (IRR) are generally also high. Some funds pursue IRRs of 15%–20%.
SC Lowy's assets under management (AUM) are $1.5 billion (about 2.2 trillion won), and it is currently raising a $400 million fund that invests in Asia-Pacific small and medium-sized corporations and real estate private credit assets.