Clearwater seeks up to $600m for latest fund – exclusive

The credit investor has returned to the market this year for fundraising after it closed its last fund in 2012.

Clearwater Capital Partners, the Asian credit investment manager, is planning to raise $500-600 million for its new credit fund.

According to market sources, the firm’s latest fund, Clearwater Capital Partners Fund V, was launched early this year and has set a target close to the size of its predecessor. It is expected to reach a first close in the first quarter of next year.

Fund V will invest in fixed income, direct lending and restructuring opportunities in Asia-Pacific.

The firm is believed to have not actively marketed the fund but raised capital discretely. Clearwater could not be reached for comment by the time of publishing.

The fund’s predecessor, Clearwater Capital Partners Fund IV, closed on $575 million in July 2012. The final size of the fund was substantially smaller than its original target of $900 million. It had already deployed 40 percent of its capital at the time of the close.

That fund secured capital commitments from corporate and state pension plans, funds of funds, endowments, foundations and family offices in the US, Europe and Asia, as well as the Overseas Private Investment Corporation and International Finance Corporation.

Hong Kong-headquartered Clearwater was founded in December 2001 to invest in credit and special situations across Asia, excluding Japan. It set up a non-banking financial company (NBFC) in India called Altico Capital in 2004.

The firm had invested $4.1 billion in the Asian region and managed approximately $1.5 billion in assets across its six investment vehicles at the end of April 2015. Clearwater’s multi-disciplinary team is based in six primary offices across Asia.