mCAPITAL raises €50m for special situations

The Hong Kong-based investment management firm expects the hybrid hedge and private equity fund to reach $1bn in AuM within three years.

Investment management firm mCAPITAL has raised €50 million for its maiden European and Asian Special Situations Fund, Mark Devonshire, founder of the firm, confirmed to PE Asia.

Structured as a hybrid hedge and private equity fund, it expects to have assets under management of $1 billion within three years, according to Devonshire. The €50 million commitment came from Italian private equity fund of fund Advanced Capital and Dutch fund of hedge funds IMQubator.

The fund will allocate about 60 percent of its resources to developed markets in Asia such as Australia, New Zealand, Singapore, Malaysia, Japan, South Korea and Hong Kong, with a focus on mid-sized “stressed, distressed, rescue and turnaround investments”, Devonshire said.

Devonshire said the firm had completed four transactions with another three currently under negotiations. He did not elaborate further.

Based in Hong Kong, mCAPITAL was originally targeting $500 million back in June 2009, when it obtained approval from the Hong Kong Securities and Futures Commission to act as an investment advisor. The firm told PE Asia then that it had particular interest in “fulcrum securities” – stakes in good companies “that are at the tipping point, and [can] be saved with appropriate investment”.

mCAPITAL is constituted of the team that spun out from Merrill Lynch’s $3 billion principal credit group, which Devonshire had headed.