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Ashmore Sets Up Global Recovery Fund

By Madhav A Chanchani

  • 08 May 2009

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.

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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. 

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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.

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The fund will have a life of at least five years. 

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"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

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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.  

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