Emerging markets distressed debt fund manager Commercial Intelligence Funds Group (CI), aims to raise USD100 million for its Global Distressed Alpha Fund III (GDAF III) to invest in emerging market commercial and sovereign-backed debt and other claims.
CI recently announced a first close of over USD18 million. Investors included a global investment management organisation renowned for its exposure to emerging markets together with a range of family offices, private wealth managers and several high net worth individuals.
The firm, which has nearly 25 years of experience of debt recovery, will invest in debt claims, judgments and arbitration awards in Africa, Asia, Middle East and Latin America. It will target a wide range of claims, typically of between USD5 million and USD300 million in size.
GDAF III will invest in claims over a three-year period, and it anticipates that claims will take two to three years to settle. The Fund will either purchase the debt, judgment or award directly or, for a fee, act on behalf of the creditor to finance the litigation of the claim or recover the debt.
CI believes that the global distressed debt market is growing rapidly in line with increased globalisation of financial and trade markets. CI has recovered USD168 million for clients since its inception in 1987. Since the launch of its fund management business in 2007, CI has raised about USD70 million in assets under management.
Michael Shone, CI Funds Group chairman, says: “We believe that this is an excellent time to be launching a new distressed debt fund. The market is growing in size as international barriers to trade and finance dissolve. Tough economic conditions are also increasing the appetite for creditors to seek closure either by selling or continuing to pursue debts that they would otherwise write off, a process that CI can help to facilitate.”