—Suzy Kenly
Newly-formed OPVS Group in Singapore is zeroing in on a private debt fund and a long/short public credit strategy. The private debt fund, Asian Opportunity Fund, is set to have its first closing in a week at $50 million. The long/short fund, Fundamental Asian Credit, will roll out with the same amount at the end of July.
While OPVS’ marketing team is approaching Asian investors for both funds, the firm is touting the less liquid Opportunity fund to U.S. investors and is focusing on European investors for the more liquid long/short Fundamental fund. “U.S. and Europe have gone in different directions,” Barry Dick, co-founder, told AIN. Many U.S.-based investors believe that last year’s problems occurred due to the liquidity terms of funds, which were inconsistent with illiquid underlying asset classes, he said. And as redemptions occurred, funds were forced to sell illiquid assets into a very weak market. “U.S. investors have no problem with illiquidity so long as other investors are locked up,” he explained.
European investors, on the other hand, want more liquidity, and the Fundamental fund offers monthly liquidity. Asian investors are somewhere in the middle, he said.
OPVS is approaching all types of investors—pensions, foundations, endowments, family offices, and funds of hedge funds—as it seeks to raise $500 million-$1 billion for the Opportunity fund, and $300 million for the Fundamental fund. The Fundamental fund will cap-off at $300 million.
The Opportunity fund will us a short duration private equity structure and will buy companies in defensive industries, such as agriculture, coal mining, healthcare and telecommunications. The Fundamental fund will invest in the public liquid credit markets. Both strategies will focus on developed and emerging markets in Asia.
Dick, Chris Francis, Sandeep Gill and Tommy Kim co-founded the firm late last year (totalalternatives.com, Feb. 9). Francis will manage Opportunity fund and Gill will oversee the Fundamental strategy. Dick and Francis previously worked at Merrill Lynch, while Gill worked at DBS Bank and Kim at Lehman Brothers. The firm has offices in New York and London.
This article was originally published in Alternative Investment News.