Clearwater, IFC plan $150m distressed asset JV

IFC will contribute $50 million in senior debt and $25 million in junior debt under the IFC Distressed Asset Recovery Program (DARP) while Clearwater will provide $75 million in junior debt from its fifth fund. Clearwater will manage the assets invested by the joint venture, according to a disclosure.

The vehicle will seek investments in distressed companies operating in emerging markets in Asia, including China, India, Indonesia, Thailand, Vietnam and the Philippines. 

Clearwater launched its fifth fund in 2016, targeting $650 million. The firm invests in Asian companies across a range of sectors that are fundamentally sound but held back by poorly-performing assets. It also provides direct lending services, particularly in second-tier cities in China, where borrowers tend to be underserved by traditional financial institutions.

IFC established DARP in 2009 to address non-performing loans (NPLs) in developing markets, with the goal of helping borrowers keep family homes and productive assets that might otherwise be lost in foreclosure proceedings. The program focuses on acquisition and resolution of NPLs and restructuring of small and medium-sized enterprises.

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• Topics
• Greater China
• Credit/Special Situations
• Fundraising
• GPs
• China
• IFC
• Clearwater Capital Partners
• Distress