ADM raises $630m for Asia credit fund

"The impacts of COVID-19 compound daily and whilst the extent of the economic disruption is still unknown, we believe small and medium enterprises will be disproportionately affected as traditional lenders prioritize top tier clients and their requests for urgent working capital," Chris Botsford, the firm’s joint CIO, said in a statement. "We are experienced in underwriting structures that solve borrowers' idiosyncratic problems, in the context of both growth and restructuring." 

ADM, which has been investing in Asia credit for two decades, recently strengthened its team with the recruitment of Neil Harvey, formerly Hong Kong and Greater China CEO and head of Asia Pacific asset management, at Credit Suisse. He has joined as executive chairman. Further hires and fundraising activity are likely as the firm readies itself for expected growth in Asia private credit.

Established in 1998 as a distressed debt investor, ADM subsequently shifted its focus to growth capital, cross-border transactions, and special situations in the region. The firm has completed 143 transactions across 16 countries and achieved 112 exits. Total assets under management now stand at $2.4 billion.

Credit investment came to the fore in 2004, and ADM claims to be one of few credit managers in Asia that has worked through multiple cycles. Repeat borrowers are an important source of deal origination. "We act as advisors to our borrowers, adding additional value," Botsford said. "We understand their unique situation and use our experience and regional network to help solve problems and navigate periods of uncertainty." 

Eighteen months ago, ADM closed its second Asia-focused secured lending fund with $178 million in commitments. It asked US-based Egan Jones to evaluate and rate the firm as a debt product in order to emphasize to investors the fundamental differences between a private lender like ADM and a private equity investor.

Credit investors, in general, expect to see more opportunities emerge as companies struggle with coronavirus-driven liquidity issues and consider restructuring options. Debt advisory firm Zerobridge Partners recently teamed up with BDA Partners in order to combine its capabilities in debt and restructuring with BDA’s experience in M&A and equity fundraising. The goal is to have more meaningful engagement with corporate clients about their financial needs.

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• Topics
• Fundraising
• Credit/Special Situations
• Restructuring
• Asia
• ADM Capital
• Distress
• Special Situations