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ADM Capital plans second CEECAT fund

Fund II will follow a similar strategy as Fund I focused on recovery in CEE and Turkey

Hong Kong-based ADM Capital is planning to launch a successor fund to its Emerging Europe CEECAT Recovery Fund that invests in central Europe and Turkey, a source told Private Equity International.

CEECAT Fund II will pursue a similar strategy and invest in growth stories in the mid-cap space, the source said.

ADM’s first fund, a 2009 vintage vehicle, closed on €265 million, short of its €300 million target, according to PEI's Research & Analytics division. To date, it has invested about €216 million in 11 portfolio companies in Turkey, Bulgaria, Romania, Croatia, Ukraine and Russia, as previously reported.

Seven investments remain in the fund, including two other portfolio companies from Turkey: Cevher Group and Antalya Anadolu Hospitals.

ADM most recently sold its 49.9 percent stake in Turkish concrete company AKG Gazbeton, which it purchased in 2011 for between €15 million and €20 millione, according to the source. The transaction generated a 20 to 25 percent IRR for ADM and a 2x cash multiple, the source said.

The stake in AKG was sold back to the founding shareholders, a normal and relatively easy exit route in Turkey, the source said.

ADM Capital, founded in 1996, is a Hong Kong-based asset management firm with $1.7 billion in assets under management, according to PEI's Research & Analytics division. It invested in Turkey for the first time in 2005 and established an Istanbul office a year later.