Asia Debt Management Hong Kong, an investment advisor specialising in distressed debt, has announced the launch of ADM Maculus Fund V, a five-year private equity-style fund that has closed
Asia Debt Management Hong Kong, an investment advisor specialising in distressed debt, has announced the launch of ADM Maculus Fund V, a five-year private equity-style fund that has closed to new subscriptions at USD418m.
Along with the raising of a further USD163mm for the ADM Galleus Fund, its flagship hedge fund, this takes assets under management to USD2.4bn for the firm, which is known as ADM Capital and has offices in Mumbai, London, Beijing, Istanbul and Singapore as well as Hong Kong.
ADM Maculus Fund V is the fourth in the Maculus series. ‘We are grateful for the strong support of our existing investors,’ says managing partner Chris Botsford. ‘This new fund gives ADM Capital the opportunity to build on its proven track record and target an increasingly attractive set of opportunities in distressed assets, non-performing loans and deep value investments in Asian and European markets.’
Fellow managing partner Robert Appleby adds: ‘This looks to be one of the most exciting sets of opportunities for distressed investing that we have seen in Asia for many years. We have been investing since the Asian financial crisis in 1997 and we are raising funds to capitalise on an expanding deal pipeline.’
ADM Capital’s funds typically buy out existing creditors on a single asset or pooled basis in order to initiate financial or corporate restructuring of companies that are either delinquent or at risk of bankruptcy. They also look for situations where a company is ripe for financial turnaround after a period when lack of available financing has constrained capacity and led to operating inefficiencies.
A recent example of ADM Capital’s approach is the sale of its interests in SFA Sogutma Sanayi ç ve Dıs Ticaret (SFA Cool), Turkey’s leading exporter of branded coolers, to Greek refrigeration manufacturer Frigoglass Group. ADM Capital invested in the Turkish company in a distressed state and managed its financial restructuring, helping it to accelerate sales growth, improve purchasing terms and reduce the cost of debt service.
Asia Debt Management Hong Kong was formed in 1996 and manages the ADM Maculus Fund, ADM Maculus Fund II, ADM Maculus Fund III, ADM Gladius Fund and ADM Galleus Fund.
The Galleus fund is an open-ended hedge fund with some USD1bn under management that has achieved an annualised return of 13.03 per cent since its launch in 1999, while the three earlier private equity-style Maculus funds have invested a total of more than USD1bn.
ADM Capital names its funds after endangered fish species. The name Maculus is derived from Orectolobus Maculatus, a shark found in shallow coastal waters around Australia and the Indian Ocean, while Galleus is from Galeocerdo Cuvier or tiger shark, one of the larger sharks found in tropical waters.
