Spice Finance, the financial services arm of B. K.
Spice Finance, the financial services arm of B. K. Modi Group, has entered into a joint venture with Singapore-based 3 Degrees Asset Management to unveil the Spice 3 Degrees Special Opportunities Fund.
The fund will be chaired by Divya Modi and will hold a first closing of USD21m comprised of commitments from Spice and 3 Degrees. A final closing will be held once third party commitments reach USD100m.
The fund will invest in distressed assets and special situations spanning India and Southeast Asia. It will target distressed assets, turnaround stories, recapitalizations as well as other opportunities that have become available as a result of the turmoil in global financial markets.
The investment objective is to generate long-term capital growth from a diversified portfolio of debt and private equity investments. The fund will focus on control-oriented investments, where board as well as management control can be achieved at the time of the investment.
‘Asia’s distressed asset market is highly inefficient, very large and growing rapidly,’ says Moe Ibrahim, founder of distressed specialist 3 Degrees (pictured). ‘With over USD2trn in opportunities and only a handful of sophisticated players, the Asian distressed asset market epitomizes the inefficiencies we seek to exploit as a firm. Although the market is enormous, competition is negligible due to the relationship intensive nature of the opportunity set.’
