Singapore (14 January 2010) - 3 Degrees Asset Management (“3 Degrees” or the “Firm”), a leading investment management firm based in Singapore, is pleased to announce the launch of 3 Degrees Credit Opportunities Fund (“3DCO”) with assets of US$27.3 million.
3DCO will invest in the performing debt obligations of Asian borrowers, focusing principally on senior secured bank loans, as well as receivables, private placements, high yield and convertible bonds. 3DCO does not intend to use leverage and will provide a high level of transparency to investors.
“3DCO will capitalize on the systemic inefficiencies endemic to Asian credit markets,” says Moe Ibrahim, Founder of 3 Degrees and portfolio manager of 3DCO. “With over US$20 trillion of debt on the balance sheets of Asian commercial banks, the opportunity set is large and growing rapidly. Moreover, with only a handful of secondary market participants, there is no need to crowd into trades. We will cherry pick opportunities to ensure maximum return, adequate liquidity and downside protection to our investors.”
3 Degrees has been operating the strategy via its managed accounts platform since June 2009, returning an annualized 28%, net of fees. As an established player in Asian credit markets, 3 Degrees is ideally positioned to capitalize on this rich opportunity, given its long operating history and superior access to deal flow.
About the Fund
3DCO will target companies that generate enough cash flow to repay maturing debt without dependence on additional fundraising exercises. 3DCO expects to limit volatility by keeping the Fund’s average duration below 24 months, and targeting events such as puts and calls, in addition to working with companies to effect debt buy-backs and tenders. 3DCO seeks an annual net return in excess of 20%.
3DCO has been established using a master/feeder structure, and is open to US investors, US tax-exempt investors, and non-US investors. The Fund has a 2-year lock up, and a 1.5%/20% fee structure. Deutsche Bank is the Fund administrator and custodian and BDO is the auditor.
About 3 Degrees
3 Degrees is a private, independent asset management firm specializing in the active management of private client accounts, credit strategies and corporate advisory and restructuring. 3 Degrees has received numerous awards, including “Best Asian Distressed Debt Fund” and “Best Singapore Hedge Fund”. In 2007, Moe Ibrahim was selected as One of 20 Rising Stars of Hedge Funds by Institutional Investor.
Managed Accounts
3DCO is also available to institutional investors and ultra high net worth individuals via the Firm's Managed Accounts platform.
For additional information, please contact:
Moe Ibrahim
