Ashmore launches fifth special situations fund

01 July 2008

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Fund

Ashmore, an emerging markets asset manager, has launched Ashmore Global Special Situations Fund Five, to target private equity and distressed debt investments in emerging markets. Although the fund has no set target, it is expected to be more than double the size of the last Ashmore fund, GSSF4, which closed on $1.3bn in October last year and is now 100% drawn. The firm is not using a placement agent to raise the capital. The fund is structured as a seven-year Guernsey domiciled limited partnership with a three-year reinvestment period. Fees are structured as industry standard 2:20.

Investors

Institutional investors, pension funds, central banks and sovereign wealth funds are among Ashmore's current investors. The minimum subscription to the fund is $10m. Although following just a year from its previous special situations fund, Jerome Booth, head of research at Ashmore, is confident that LP appetite for the fund will be strong: "The day of the big leveraged play is over. Around 50% of global market cap will be in emerging markets in 15 years. We are raising this new fund because there is far more dealflow than we can currently look at."

Investments

The fund will target control stakes in companies and distressed debt investments in emerging markets which Ashmore defines as any market other than the US, Canada, Japan, Western Europe, Australia and New Zealand. The fund is permitted to invest no more than 30% of the total capital in one country and 10% in one deal. The fund will also look to invest no more than 25% in one country or sector. Fifteen to 20 deals are being targeted, with "maybe around a dozen" anticipated in the first year.

People

Ashmore has a team approach to investing, and all investments are agreed collectively at Ashmore's Investment Committee meetings. Ashmore works with a network of local partners in executing transactions.

Name:

Ashmore Global Special Situations Fund Five

Focus:

Buyouts, distressed debt

Contact:

Mark Coombs, Jerome Booth

Address:

Ashmore Investment Management Limited

61 Aldwych

London

WC2B 4AE

Tel: +44 20 3077 6000.