Alternative Lending Platforms
CHINAfrica Partners strongly supports and seeks to invest in ALP's or (Alternative Lending Platforms). "Quiet banking" has opened up numerous economic opportunities for alternative lending platforms that connect borrowers directly with investors. Peer-to-peer lending, crowdfunding, and marketplace lending are examples of alternative lending models that have gained traction over the past few years. These platforms can offer more flexible terms, faster approval processes, and access to private credit, and capital for individuals and small businesses who may struggle to obtain traditional loans from banks, finance companies, or credit unions.
Structured Investment Vehicles (SIVs):
CHINAfrica Partners, LLC views SIVs as entities that issue short-term debt to invest in longer-term and riskier assets. Although these financial instruments played a significant role in the financial crisis of 2008, reforms since then have made them less prevalent. CHINAfrica Partners realizes there may still be tremendous opportunities in developing innovative and well-regulated SIV structures that cater to specific investor needs in China, Africa, the U.S., and around the world.
Securitization
CHINAfrica Partners, LLC is deeply aware "quiet banking" has been closely associated with "securitization", which involves bundling assets (such as mortgages, auto loans, or credit card receivables) into "tradable securities." While securitization faced significant challenges during the financial crisis, there may be opportunities to develop fresh new securitization structures that address regulatory concerns and investor demands, such as the securitization of State and Federal prisoners' convictions which would be recorded on the blockchain. By recording prisoners' convictions on the blockchain CHINAfrica Partners seeks to add a whole new layer of transparency to securitization.
Money Market Funds
CHINAfrica Partners, LLC is high on utilizing money market funds as investment vehicles that aim to provide liquidity and stability. These funds invest in short-term, low-risk securities, such as Treasury bills and commercial paper. However, they are subject to the risks of the underlying assets. CHINAfrica Partners has determined opportunities may exist in developing innovative money market fund structures that balance investor demands for liquidity, security, and yield while maintaining appropriate risk management measures.
"Quiet Banking" Technology, Security, and Infrastructure
CHINAfrica Partners, LLC understands the "quiet banking" sector continues to evolve. We realize there is a growing need for robust infrastructure, cyber security, and technological solutions. Therefore, CHINAfrica Partners, LLC has developed a plan to build AI-driven, risk management tools, regulatory compliance systems, data analytics platforms, and cybersecurity measures tailored to the unique characteristics and challenges of what is known as "quiet", private, or shadow banking. We believe companies that can provide efficient and secure infrastructure and technological solutions to support the operations of "quiet banking" entities may find significant financial and economic opportunities in the near future.