Värde collects $400m for debut Asia credit fund

Värde Asia Credit Fund – the firm's first private equity product dedicated to the region – will follow a similar strategy to that pursued by its manager on a global level, seeking opportunities across corporate credit, special situations lending and stressed and distressed real estate. It will leverage structural and cyclical factors, such as bank retrenchment, less developed capital markets, and companies with high leverage levels that are facing slower growth.

"Asia presents a massive opportunity for Värde to provide flexible capital and restructuring expertise while delivering value to our investors around the world," said Ilfryn Carstairs, the firm's Singapore-based global co-CIO, in a statement. "Since opening our regional headquarters in Singapore more than a decade ago, we have built institutional infrastructure in the region, thoughtfully expanded into new markets and hired local professionals in key areas of activity."

Värde has invested over $4 billion across 15 countries in Asia Pacific and now has more than 40 employees in offices in Hong Kong, Mumbai, Singapore, Sydney, and Tokyo. Recent activity includes the establishment of a joint venture in India with Aditya Birla Capital (ABCL), the financial services arm of the Aditya Birla Group, that will invest in stressed and distressed assets in India.

Speaking to AVCJ earlier in the year, Carstairs was bullish about the prospects for India, citing improved bankruptcy legislation, incentivization of different market participants to deal with the country's mounting non-performing assets (NPA) problem, and equity injections into the banking system so lenders can dispose of problem assets. Värde, which has invested nearly $500 million in India over the last five years, estimates there is $180-200 billion in NPAs in the banking system.

Värde Partners has $14 billion in assets under management and operates across a variety of areas, including corporate and traded credit, specialty finance, real estate, mortgages, energy, real assets and infrastructure.

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• Topics
• Fundraising
• Credit/Special Situations
• Restructuring
• Varde Partners
• Structured finance
• Asia