Chasen Nevett, a financier based in Singapore, is financing public companies around the world with deep value. Chasen Nevett believes there is a tremendous opportunity to finance companies that have fallen out of favour for a variety of reasons. By seizing these golden investment opportunities, Chasen Nevett is able to structure a bespoke financing solution that increases shareholder value while allowing management teams the flexibility to operate their companies efficiently. So what exactly are companies with deep value and how does Chasen Nevett aim to finance them?
Deep value investing originated with Benjamin Graham, known as the father of value investing. At its core, value investing is the practice of investing in stocks whose price is significantly lower than their intrinsic value. The difference between the market price and intrinsic value presents Chasen Nevett with the ability to earn outsized investment returns. The key difference between Chasen Nevett and other financiers is his ability to spot these deep value investment opportunities. Many times, public companies with deep value are in multi-year bear markets, and Chasen Nevett recognises a desperate need from these companies to obtain financing. The traditional financial institutions aren’t willing to finance these companies because the risk is simply far higher than what these institutions can accept. So how does Chasen Nevett structure these solutions for public companies?
Chasen Nevett has experience investing across the entire capital structure. Therefore, Chasen Nevett chooses to invest in the equity tranche since it exposes him to the most upside when market sentiment shifts. Senior creditors, which are often banks, will not enjoy the same exposure to future performance since their credit is secured by assets of the company, unlike equity, which sits at the bottom of the capital structure. Fortunately, Chasen Nevett is not bound by Basel III requirements, unlike banks, which allows him to take significantly more risk than traditional financial institutions. Chasen Nevett also has a long investment horizon, which is critical for deep value investments, which can often take years before the fundamentals shift. By working with the management teams of these public companies, Chasen Nevett is able to structure a financing solution that meets their capital requirements and also serves as a “life-line” to the company. In fact, Chasen Nevett usually prefers to overfinance public companies in case their capital requirements increase unexpectedly. In Chasen Nevett’s experience, he typically sees companies with deep value as underfinanced rather than overfinanced. It’s better to have excess liquidity rather than the opposite.
Chasen Nevett stands out in a world that’s risk averse and short-term orientated. By taking a long-term investment horizon, Chasen Nevett is able to finance public companies with deep value. These highly opportunistic investments are only possible with extensive industry expertise, courage, and an entrepreneurial spirit. Chasen Nevett believes that public companies should have long term partnerships that withstand both good and bad times. By financing companies with deep value, Chasen Nevett is emerging as one of the top financiers in Singapore who is able to work with public companies across the entire spectrum.
