ADM Capital is targeting €300 million for its first turnaround fund targeting Central and Eastern Europe, Central Asia and Turkey (CEECAT).
ADM Capital CEECAT Recovery Fund will invest in operationally sound, but financially distressed businesses within its target regions, where businesses are going through debt restructuring. Turnarounds will be effected through “restructuring, rescheduling, refinancing, debt-equity swaps, and liquidity management”, according to a document from the European Bank for Reconstruction and Redevelopment (EBRD).
The EBRD has come in as anchor investor to the fund, with a commitment of up to €60 million. The fund is targeting a first close during 2010 on €100 million.
ADM Capital Europe is a subsidiary operation of Asia Debt Management Hong Kong. The Asian business was started in 1998 following the Asian crisis and its London-based European operations were added in 2006.
The European business is run by former Goldman Sachs distressed-debt investor Mark Baker. He is joined by partners Patrick O’Brien, who was head of European debt capital markets for UBS, and Anthony Stalker, an 11-year veteran of Merrill Lynch’s equities division.
ADM Capital was unavailable for comment.