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IFC and Clearwater Capital to invest in distressed assets in India
International Finance Corporation (IFC) is planning to co-invest in to acquire distressed and special situations assets in four countries including India through a special purpose vehicle (SPV) formed by Clearwater Capital Partners.
The project consists of an IFC investment, under IFC Distressed Asset Recovery Program (DARP), of up to $75 million to invest in distressed and special situations assets of companies operating in emerging markets in Asia including India, China, Indonesia, Philippines, Thailand, and Vietnam.
The proposed transaction consists of upto a $75-million facility to the Project SPV, in the form of $50 million senior debt and $25 million junior debt, with additional $75 million junior debt funded by Clearwater Fund V.
IFC will be channeling financing to local companies in distress, supporting them to meet their financial obligations, achieve sustainable growth and contribute to job creation and local economic stability.
"The proposed IFC's long-term partnership with Clearwater is expected to help mobilise additional local and regional investor to focus in investments in the emerging market distressed sector in the Asia region," said IFC.
Since inception, IFC has invested $1.9 billion and mobilized $3.4 billion from investors in its distressed asset platform.
Clearwater Capital Partners, LLC, is an Asia-dedicated distressed and special situations assets investor. Established in 2001, Clearwater is privately owned and has offices in Mumbai, Chongqing, Seoul, Singapore, and Hong Kong.
Clearwater has a 15-year strong investment track record through funds dedicated to distressed assets in Asia and as of today, the firm has around $1.3 billion of assets under management.
In December, Altico Capital India Pvt. Ltd, the non-banking financial company of Asia-focused investor Clearwater Capital Partners Llc, invested $195.7 million across five realty deals in Hyderabad and Pune. Altico has deployed more than Rs 85 billion in 100 projects covering more than 100 million sq ft area in seven cities, according to reports.