Clearwater Seeks $1B For Distressed Asian Debt

Clearwater Capital Partners is out on the fundraising trail again, seeking $1 billion for its fourth Asia distressed debt fund.

The New York-based shop intends to raise Clearwater Capital Partners IV to invest in distressed debt throughout Asia, with the exception of Japan. The firm’s strategy involves creating a diversified portfolio of special situation investments, distressed and undervalued assets and securities. The firm targets investments in restructured or operationally sound public and private companies that are undervalued or poorly capitalized; operational turnarounds; and non-performing loans.

Clearwater Capital Partners Fund III closed with $900 million in July 2007 with backing from state and corporate pension funds, funds of funds, endowments, foundations, insurance companies and family offices in the United States, Asia and Australia. The California Public Employees’ Retirement System pledged $150 million to Fund III in addition to supporting the firm’s first two funds. The New York State Common Retirement Fund committed $50 million to the third fund, and the Australia Post Superannuation Scheme also pledged to the vehicle. HarbourVest Global Private Equity Limited and the Overseas Private Investment Corp. are also past supporters of the firm.

Robert Petty and Amit Gupta founded Clearwater Capital in 2001. The shop has more than 75 employees and 30 investment professionals in six offices in New York, Beijing, Hong Kong, Mumbai, Seoul and Singapore.