Manila, October 31, 2018—IFC, a member
of the World Bank Group, the IFC Financial Institutions Growth Fund and
the IFC Emerging Asia Fund, two funds managed by IFC Asset Management Company
(AMC), are investing up to $65 million in Altus Special Situations Asia
1 LP. The investment will support distressed companies in East Asia’s
emerging markets with financing to ensure they can meet their financial
obligations, regain creditworthiness, and preserve jobs, thereby contributing
to sustainable growth.
Companies in the region face challenges, despite strong economic growth.
In some markets, following the global financial crisis, loan defaults among
highly leveraged corporations have increased, and a ballooning of non-performing
loans (NPLs) has locked in banking capital. As a result, financially distressed
companies are unable to obtain credit to restore viability and rebuild
Through its global Distressed Assets Recovery Program (DARP), IFC works
with partners to build regional platforms across emerging markets and catalyze
other institutional investors to invest in distressed assets. The investment
will enable Altus to set up a regional facility to invest in the Philippines,
Thailand, Indonesia, and Vietnam, the latter two being nascent markets
for distressed asset recovery. With this investment, IFC and AMC seek to
support this growing and attractive market for investors.
"I am excited to embark on this next phase of Altus Capital’s expansion
with our partners at IFC, AMC and other institutional investors,” said
Pavan Gidwani, Altus Capital’s CEO. He added, “We welcome Altus playing
a dynamic role as both a hands-on investor and an asset manager within
this growing region, actively assisting to unlock value in viable but underperforming
middle-market companies, as well as in hard assets in need of redevelopment
and repositioning. Our track record provides many documented successful
turnaround stories in various sectors and markets, all with high social
and development impact. We are fully committed to build upon that continuing
legacy with our new Fund."
Altus Special Situations Asia 1 LP will have
up to $272.5 million of deployable capital. IFC, IFC Financial Institutions
Growth Fund, and IFC Emerging Asia Fund will be contributing up to $15
million, $25 million, and $25 million, respectively. Altus Capital Corporation
will contribute $7.5 million.
“IFC’s support is likely to promote greater market integration for distressed
asset resolution through the creation of a regional platform. This will
mobilize much needed regional and international capital for distressed
companies to make them viable again,” said Vivek Pathak, IFC Director
for East Asia and Pacific. He added, “Subsequently, these companies can
plan for long-term, sustainable growth that increases job opportunities,
driving economic growth in the region.”
“The IFC Financial Institutions Growth Fund and the IFC Emerging Asia
Fund are pleased to invest in Altus, which will provide much needed capital
and expertise for companies in the region that have struggled to perform.
In doing so, the funds see an opportunity to enhance this impact and create
good financial returns for our investors,” noted Marcos Brujis, Chief
Executive Officer, IFC Asset Management Company.
IFC has worked with Altus—an existing DARP partner—since 2012. As of
March 2018, IFC DARP has deployed over $5.5 billion focused on distressed
assets globally. In Asia, IFC DARP’s active projects include IFC commitments
of approximately $525 million and co-investments of approximately $560
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company, LLC, a wholly owned subsidiary of IFC, mobilizes
and manages capital to invest in businesses in developing and frontier
markets. Created in 2009, AMC provides leading institutional investors
with unique access to IFC’s emerging markets investment pipeline and investment
expertise, while providing positive development impact in the countries
in which it invests. AMC funds’ investors include sovereign wealth funds,
pension funds, and development-finance institutions. It has raised approximately
$10 billion across 13 investment funds covering equity, debt, and fund-of-fund
products. For more information, visit www.ifcamc.org
About the IFC Financial Institutions Growth Fund (FIG)
The $505 million IFC Financial Institutions Growth Fund is a follow-on
fund to the IFC Capitalization Fund and makes equity and equity-like investments
in financial institutions in emerging markets.
About the IFC Emerging Asia Fund (EAF)
The $693 million IFC Emerging Asia Fund, launched in 2016, makes equity
and equity-like investments across all sectors in emerging markets in Asia.
About Altus Capital Partners
Altus Capital Partners is a specialist investor and asset manager, focused
on Special Situation and Distressed Assets investments across South East
The firm invests, on behalf of funds it manages,
into stressed, distressed, non-performing, and underperforming portfolios
of both credit and real estate originated from various selling financial
institutions, corporate turnaround and rescue financing and direct real
estate investments that are in need of redevelopment, value add and repositioning
The firm’s asset management infrastructure
includes an internal credit and remediation servicing team, a real estate
brokerage team, and an in-house real estate development team, providing
a turnkey solution to distressed real assets that the firm acquires.
The firm started in the Philippines in 2005 and has since expanded into
Thailand and Indonesia.