Fintech platform Helicap acquires securities firm Arcor Capital

FINTECH startup Helicap, which offers alternative lending services in South-east Asia, has acquired securities firm Arcor Capital.

Singapore-based Arcor Capital specialises in private debt securities and growth capital for early-stage and mid-market enterprises in Asia, and holds a Capital Markets Services (CMS) licence for dealing in securities from the Monetary Authority of Singapore (MAS).

Arcor Capital will join Helicap Investments under Helicap Group to source investment opportunities for accredited investors from the US$500 billion Asia-Pacific alternative lending market.

Co-founder and chief executive officer of Helicap, David Z Wang, said: "The acquisition, together with Helicap Investments successfully obtaining registered fund management company status, enhances the group's leading position in the alternative lending market and enables us to immediately ramp up our engagement with sophisticated investors via debt securities fundraising and credit fund management.

"We are delighted to welcome stellar finance professionals - Patrick and Rahul - to the Helicap family and leverage their decades of experience to further add to Helicap's reputation of backing sound and reputable companies."

Co-founders and managing partners of Arcor Capital Patrick Hong and Rahul Khemka will retain their senior management roles following the acquisition. In addition, Arcor Capital co-founder Simon Ong will remain as senior adviser to the company.

Helicap Investments will launch its first fund with a target assets under management (AUM) of S$200 million. First subscriptions for the funds are set to come in in September, the firm told The Business Times.

The funds will be invested in a portfolio of loans selected from alternative lending platforms operating in Asia. Currently, Helicap Investments has invested in eight alternative lending platforms across Asia.

"We are excited to join the Helicap Group. As one of the first movers in the market, Helicap has established itself as a leader in alternative lending. Together with Helicap's scale, resources and reputation, this provides us with an ideal platform for expanding our private debt business," said Mr Hong.

In May 2018, Helicap Group raised US$1.5 million in seed funding led by Singapore's former Minister of State for Manpower Teo Ser Luck. In September that year, it further raised US$5 million in a pre-series A road led by East Ventures and Soilbuild Group Holdings.