Established in the aftermath of the Asian Financial Crisis, ADM Capital has been investing in Asia Pacific credit since 1998.
With experience across geographies, sectors, investment cycles and credit strategies, ADM Capital seeks to provide uncorrelated risk-adjusted returns to investors by financing the region’s leading mid-market corporates with highly structured private credit loans.
At A Glance
As of December 2022;
(Asia-Pacific Private Deal Track Record Since Jan-04)
Current Asia Private Credit AUM
USD0bn
Invested Since Inception
USD0bn
Founded in
0
Loans Invested
0
Loans Fully Repaid
0
ESG-integrated
ESAPs* & KPIs
*An ESAP is a tailored Action Plan that guides the ESG risk management strategy of the portfolio company throughout ADM Capital’s loan period. The ESAP is developed as part of an Environmental and Social due diligence report, which includes a gap analysis against the IFC Performance Standards, and contains detailed action items with target completion dates, priorities, and reference regulations/standards. KPIs, capturing the E&S value add throughout the ADM Capital loan tenor, are established for each project.
Proprietary Loan Origination
ADM Capital has built a formidable proprietary network of origination channels across the Asia Pacific region. Avoiding syndicated loans and ‘Other People’s Deals’, ADM Capital accesses its network of previous borrowers, lawyers, auditors, financial advisors and consultants in its markets to bi-laterally source opportunities.
ADM Capital is known as a trusted lender that seeks to support companies, supporting management in the delivery of in their pursuit of growth.
We conduct top-down sector analysis to ensure portfolios align with government policies and macroeconomic trends.
ADM Capital is flexible and opportunistic in the assessment of risk and deployment of capital.
Trusted Credit Providers
Our Borrowers drive growth in their respective markets and are strong, capable and ambitious management teams looking to take advantage of domestic or regional growth opportunities. In some instances, our Borrowers are stressed and in need of a flexible and friendly lender with the experience to understand their complex and idiosyncratic situation. Borrower’s may seek ADM Capital’s regional network, speed of execution, structuring flexibility and confidentiality when seeking capital.
We look to be the lead lender in transactions and seek to partner with Borrowers. In doing so, we look to use our own documentation, ensure alignment of interest and obtain strong governance rights through board representation, negative covenants and other downside protections. Given the depth and breadth of financing opportunities in Asia, it remains a lenders market with no deterioration in underwriting standards.
ADM Capital uses its position as a secured lender to drive positive environmental and social developments in its portfolio companies, preparing them for future institutional financings and regulatory developments.
Secured Direct Lending to Underbanked Corporates
ADM Capital typically pursues a secured, direct lending credit strategy that seeks to generate income and limit downside via collateral, strong governance and oversight.
With a regional mandate and experience across all types of credit investment and the capital structure, ADM Capital is able to opportunistically deploy in attractive credit opportunities regardless of the investment environment or economic cycle.
A combination of positive economic growth momentum and increased regulatory pressure on international, regional and domestic banks has created a credit vacuum in the Asia Pacific region leaving many middle market firms without access to long-term financing. Small and medium sized borrowers are seeking agile financing partners who are able to understand transaction complexity and layers of risk.
Secured Direct Lending Advantages
Downside Protection
Diverse collateral, strong governance, alignment of interest and covenants.
Yield
Higher yielding credit delivering an illiquidity premium and providing strong risk-adjusted returns.
ESG-integrated
Enhancing environmental and social standards throughout loan tenor.
Structuring Experience
Effective lending structures underpin private credit success in Asia Pacific. Our team has deep cultural and regulatory knowledge of Asia Pacific jurisdictions and our structuring approach is informed by a 22-year track record, structuring more than 170 loans with our in-house expertise.
Key principles include:
Operating on a local level where possible
Building strong and properly perfected legal security structures to the highest extent possible for the relevant jurisdiction/investment
Taking security over multiple assets as well as the primary asset
Ensuring appropriate governance and monitoring mechanisms, allowing monitoring of financial performance post-investment and action before any default event
Asia accounts for a third of global GDP, two thirds of global growth but only 8% of global private credit AUM. With very few market participants there is a lack of competition in the mid-market lending space.
Process Driven
ADM Capital’s deployment of capital is process driven and governed by a diverse group of experienced private lending experts.
ESG-Integration
Some private credit managers argue that their engagement with borrowers is too short to focus on ESG issues. ADM Capital has considered ESG factors in its investment process for more than 12 years, and we believe that ESG risk factors can be significant and that there is considerable investment risk in ignoring environmental and social issues.
We believe that no matter the tenor of our loans, we can foster better outcomes for our portfolios and borrowers via comprehensive yet materiality-focused ESG due diligence, risk identification and incorporation of ESG action plan compliance and reporting into financing covenants and the overall deal business plan.
We do this with the support of our ESG Committee, Sustainability Advisor and Environmental and Social Management System, who combine to ensure our underwriting considers ESG risk at various stages of our investment process:
1
Exclusion List
2
In-house ESG Toolkit
3
Investment Advisory Committee Screening
4
Independent E&S Consultants
5
Environmental and Social Action Plans
6
Key Performance Indicators
Let us know how we might solve your financing requirements.
