Monday June 23, 10:50 AM
Ashmore Global Special Situations Fund Five targets at least $2.6 bln - source
LONDON (Thomson Financial) - Ashmore Investment Management Limited is looking to raise at least $2.6 billion for its latest private equity fund called Ashmore Global Special Situations Fund Five (GSSF5), according to a person involved in
the process.
The fund management subsidiary of Ashmore Group Plc (LSE: ASHM.L - news) . announced Monday that it had launched its fifth private equity fund focusing on emerging markets.
The person said Ashmore was looking to raise 'double or more' than its previous fund GSSF4, which had commitments of $1.3 billion.
Ashmore Group chief executive Mark Coombs said he wanted the fund to be 'significantly larger' than its previous two funds.
'The deal flow we are seeing is extremely strong and we would prefer this fund to be significantly larger than the previous two as we believe we have uses for the money over the same sort of time horizon,' Coombs said.
'When we launched GSSF3 our historical average IRR (invested rate of return) on exited deals was 34 percent. Today it is 38 percent and we continue to see many attractive opportunities,' he added.
GSSF4, which raised initial funding in October 2007, has now drawn down 70 percent of its commitments, Ashmore said in a statement.
The person involved in the new fundraising said Ashmore expected to close its latest fund by the end of 2008, as it wished to give its institutional investors more time to make their commitments than it had on previous funds.
In the statement Ashmore said GSSF3, a $1.4 billion fund which raised initial funding in August 2006 and had a similar structure, was fully drawn down in under 11 months.
The statement added that the new fund will invest principally in private equity as well as distressed and other debt instruments in emerging markets. According to the Ashmore website these include parts of Latin America, Central and Eastern Europe, the Middle East, Africa and Asia.
GSSF5 will be similar in structure to the GSSF3 and GSSF4 funds, with a seven year term including an initial three year re-investment period, Ashmore said.
|
Send Article by Email
