ADF Prime is an extension of our successful distressed debt strategy, The Asian Debt Fund (ADF). This small fund is a concentrated alternative, investing in the top 10-15 ideas from the ADF series of funds. The Fund will hard close at $100 million and employ a wait list mechanism expected to provide investors with unprecedented liquidity in this attractive asset class.
The strategy’s relatively broad focus is balanced via a concentrated number of positions and small fund size. This opportunistic fund benefits from the firm’s vast experience in distressed debt, direct investment, asset backed lending and real estate. It will invest alongside the firm’s existing ADF series of funds, wherein investments will be subjected to a secondary selection process designed to identify the Firm’s top picks.
The fund’s charter exemplifies the Firm’s investment philosophy: to seek bargain purchases in obscure, relationship-driven markets. Most importantly, ADF Prime will focus on avoiding losses and will target those investments that provide the greatest degree of liquidity.
The fund may invest at any level of the capital structure, use a modest amount of leverage, engage in shorting and invest in companies which are considered stressed.
Asia ex-Japan Distressed Debt (including Australia)
Target AUM
$100 million (the Fund will hard close at $100 million)
Target Annualized Return
20%
Fund Inception Date
TBA
Fund Domicile
Cayman Islands
Investment Manager
3 Degrees Capital Ltd
Investment Advisor
3 Degrees Asset Management Pte Ltd
Auditor
Ernst & Young
Administrator and Custodian
HSBC Institutional Trust Services (Asia) Ltd
Legal Advisor
Maples & Calder
INVESTMENT TERMS
Minimum Subscription
USD 5 million
Annual Management Fee
1.5%
Annual Performance Fee
20%
High Watermark
Yes
Subscription Frequency
Monthly
Redemption Frequency
Quarterly
Notice Period
90-days
Gate
5%
Initial Lock-Up
18 months
Open or Closed
Open
Waitlist
ADF Prime will hard close at $100 million. A waitlist will be created wherein the Notice Period, Lock-Up, and Gate will be waived should sufficient demand exist on the waitlist to satisfy pending redemptions.
