ADM Capital closes second distressed fund

The Hong Kong-based firm has already committed 55 percent of its $338 million ADM Maculus Fund II fund and will raise a third fund this year.

ADM Capital has announced the closing of the $338 million (€409 million) distressed debt vehicle, ADM Maculus Fund II, with a $25 million commitment from Asian Development Bank.
 
Robert Appleby, a company director at ADM Capital, told PEO that 55 percent of the fund has already been committed, leaving the remaining 44 percent to be invested before the end of March.  

Several deals remain to be tied up, one of which is additional investment in Bangkok Mass Transit System (BTSC). ADM Capital had previously taken significant stakes in both BTSC’s debt and equity. 

The completion of those deals will lead ADM Capital to raise its third fund, ADM Maculus Fund III, with a target of $668 million, in the second quarter of 2006. By then, the firm expects to have fully invested its second fund, added Appleby.

The ADM Maculus funds focus primarily on Southeast Asian markets which are believed to harbour the equivalent of more than $800 billion in non-performing loans. To date, Asian Development Bank has committed a total of $45 million to the ADM Maculus fund series.

Limited partner commitments in the Maculus funds come from endowment and pension funds in North America, as well as some from Europe.
 
To date, ADM Capital has made two “small” exits from the first $138 million fund, and has generated over 25% in IRR – in line with its target, according to Appleby.
 
In March last year, ADM Capital completed one of the largest recent Indian corporate restructurings for India Cements Limited. While ADM Capital isn’t sector focused, it has had “a particularly good run in petrochemicals, cement and property,” Appleby told PEO.