IFC plans $273m Southeast Asia distress JV
The International Finance Corporation (IFC), the investment arm of the World Bank, has proposed a partnership with Philippines-based Altus Capital to invest up to $272.5 million in distressed assets in Southeast Asia.
IFC will commit up to $65 million to the project, called Altus Regional Facility (AltusRF), comprising $15 million from its own account and $25 million each from the IFC Emerging Asia Fund and the IFC Financial Institutions Growth Fund, according to a disclosure. The remaining capital will be raised by Altus co-founders Pavan Gidwani and Benjamin Sevilla, along with a potential strategic investor.
AltusRF will invest in distressed assets in the Philippines, Thailand, Indonesia and Vietnam, targeting companies that are viable but face challenges such as deteriorating earnings and limited access to bank financing. As the distressed asset market in these countries is currently highly fragmented, AltusRF is intended to provide a regional platform that can operate more efficiently and incorporate a broader range of expertise.
Altus Capital was founded in 2005 to invest in special situations across Southeast Asia, covering distressed and non-performing assets, real estate, and corporate restructuring. IFC owns a 15% stake in the GP, with the remainder held by the co-founders.
The Altus JV follows a similar arrangement launched earlier this year between IFC and Hong Kong-based Clearwater Capital Partners. That vehicle, which saw the two investors jointly commit $150 million, seeks investments in distressed companies operating in emerging markets in Asia.
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