Clearwater reaches final close of $575m on fourth fund

Overseas Private Investment Corporation (OPIC) and International Finance Corporation (IFC) are among the LPs in the new vehicle. Other commitments came from corporate and state pension plans, fund-of-funds, endowments, foundations and family offices in the US, Europe and Asia.

The fund will have a similar investment thesis to its three predecessors, targeting fixed income, direct lending and restructuring opportunities in pan-Asian companies as well as firms operating in China, India, South Korea, Australia and Southeast Asia specifically. Clearwater claims to have invested and profitably exited more than $3 billion of capital in these areas since the firm was founded in 2001.

According to Rob Petty, Clearwater's co-founder and managing partner, opportunities in stressed and distressed credit in Asia amount to $100 billion as part of a larger $23 trillion debt market.

"A lot of attention has been paid to the European debt turmoil, however we believe that the Asian credit market provides an even better investment opportunity because Asian credit yields are higher, sovereign risk is lower, banks have the capital to take the hit, economies are still fundamentally growing and companies can exit from extensions and work-outs," Petty said.

He added that the withdrawal of some lenders from Asia has opened up the direct lending market, allowing participants like Clearwater to benefit from the relatively higher interest rate environment. In the last year the firm has been involved in debtor-in-possession financings, rescue financings and secured financings.

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• Topics
• Fundraising
• Credit/Special Situations
• Restructuring
• Distress
• Clearwater Capital Partners
• Fundraising