Hong Kong-headquartered Myo Capital Advisers has received up to $150 million anchor investment from Singapore-based DBS Bank for Myo Capital Special Situations Fund I, its maiden fund with a private equity structure.
Myo Capital, established in 2007, currently manages a vehicle that has a hedge fund structure with a one year lock-up period and a quarterly redemption notice period, Justin Ferrier, founder and managing director of Myo Capital, told PEI Asia.
“DBS Asset Management and Myo Capital are working together to raise additional capital for a fund targeted at the Asian distressed and special situations investment opportunity. As a sign of its commitment to this opportunity, DBS Bank will invest up to $150 million to seed this fund,” Deborah Ho, chief executive officer of DBS Asset Management, told PEI Asia.
DBS will acquire a minority stake in Myo Capital, which will be held by DBS Asset Management, she added.
Myo Capital Special Situations Fund I is targeting commitments of $300 million and is expected to see a first close in July this year. The fund has a private equity structure with a three-year investment period followed by a three year period for divestments.
The firm is seeing interest from the larger family offices who are looking for special situation opportunities in Asia and are interested in co-investment access to these opportunities which are otherwise inaccessible to them, Ferrier said.
The fund is focused on distressed assets and special situations in the Asia Pacific region. Its initial focus will be on senior debt and it may subsequently invest in other areas. The fund will invest in public bonds, non-performing loans and leveraged loans on the distressed side, Ferrier said. On the other hand, in the special situations sphere, the fund will seek primary and secondary financing opportunities.
Myo will look to invest between $10 million and $25 million per transaction and will primarily focus on markets such as Australia, China, Indonesia, Malaysia, Thailand and the Philippines.
Myo was established by Ferrier and Geoff Lee, also a managing director. Both Ferrier and Lee were formerly at Peregrine Capital. Prior to founding Myo, Ferrier spent 8 years with ADM Capital, one of Asia’s largest distressed debt managers, where he was a director and sat on the firm’s investment committee. Lee has also worked with CLSA Capital Partners and HSBC Alternative Proprietary Investments in the past.