Emerging markets fund manager Ashmore Investment Management Ltd has launched a fund targeting less liquid assets. The new fund, called Ashmore Global Consolidation and Recovery Fund (AGCRF), has seed investment from Swiss banking major UBS of reportedly $100 million. The fund has an objective of maximising the recovery value of less liquid or other financial assets in emerging markets.
Ashmore has invested in a number of firms in India. It also runs a private equity joint venture with Alchemy Partners in India. Some of Ashmore's India investments include majority stake in Broadband Pacenet and Rs 90 crore investment in Quality Care India.
The Global Recovery Fund is modeled on Russian Consolidation and Recovery Fund launched by the firm in 1999, which achieved gross returns of 103.9% annualised until its conversion in May 2002 into an open ended fund.
The fund will have a life of at least five years.
"Just as in 1999, we are offering the opportunity to financial institutions, including other funds and their investors / LPs who may be exiting/reducing their emerging market commitments, together with any other investors, of addressing some or all of their emerging market balance sheet exposures. Crucially investors
will maintain the upside as asset prices recover and, most importantly, they will not be selling at the bottom," said Mark Coombs, Ashmore’s Chief Executive, in a release.