Description of Business & Investing Policy
Adamas Finance Asia focuses on funding growth capital to SMEs predominately in Pan-Asia Region to meet the underserved financing needs of such enterprises across various industries. Our investment strategy consists of collateralized lending, structured finance, and strategic finance. We focus predominantly on asset backed structures to generate equity upside with credit-like downside protection.
Adamas Finance Asia is supported by Harmony Capital Investors Limited and its affiliate group members, Adamas Asset Management, which runs various credit strategy funds and has won the prestigious Acquisition International Magazine’s award (in collaboration with Preqin) – 2013 Best Asia Mezzanine Fund of the Year. Adamas Asset Management has also been nominated as Asia Lender of the Year by Private Debt Investor (PDI) magazine in 2013.
Adamas is the Greek word for diamond. Diamond is the most structurally robust and strong natural resource. It signifies longevity, durability, safety, not to mention rarity, exclusivity and value. These values are key attributes to Adamas Finance Asia and reflect the philosophy of our organisation.
We have elected to be regulated as a London AIM listed vehicle, under AIM rule 26. Our common stock is publicly traded on AIM, London Stock Exchange, under the ticker symbol “ADAM”.
The Board of Adamas Finance Asia works together with Harmony Captial Investors Limited and Adamas Asset Management, a company with a Securities & Futures Commission Type 9 (Asset Management) license in Hong Kong, to execute our investment strategy.
The investment manager of the Company has the flexibility to invest across Asia, across sectors and across the capital structure of companies. Furthermore, given the long-term nature of the Company's investment horizon, a more flexible Investing Policy should enable the Manager to navigate changes in the relative attractiveness of various financing asset classes in Asia through economic cycles and, potentially, geopolitical shifts which may increase the sovereign risk associated with specific countries relative to others within the region.
The investing policy of Adamas Finance Asia is the following:
- The Company has an indefinite life and is targeting both capital gains and income distributions for its Shareholders over time.
- The Company will provide equity and credit funding to companies, principally in the Pan-Asia region or with a connection to Asia. It will seek to do this by:
- providing funding directly to companies via the provision of loans or other credit instruments which may be secured against assets of the borrower or its affiliates;
- providing funding to companies to accelerate their growth, expand the scale of their business and/or to consolidate their organizational structure in preparation for a public listing. Investments could be in the form of structured equity, debt and hybrid debt securities;
- providing growth, development and acquisition capital in the form of equity or quasi-equity to companies within growth industries;
- providing funding to transactions structured around significant corporate events such as recapitalisations, debt restructurings, buybacks of shares, asset spin-offs and corporate reorganisations;
- investing in publicly traded or ‘over the counter’ traded equity or credit securities, such as preferred stock, common stock, high yield bonds, senior loans, warrants, where the market is mispricing a company’s securities and thereby offering an attractive risk adjusted return due to one-off or short term factors; and
- investing (in addition to securing co-investment rights for the Company) as a limited partner or shareholder in third party managed vehicles which have a strategy to provide credit and/or equity funding to companies in a specific industry.
- The Company will be sector agnostic in its investment activities.
- New investments will be managed actively, including through appropriate investor protections which will be negotiated on each transaction as appropriate and relevant.
- The Company will consider using debt to finance transactions on a case by case basis and may assume debt on its own balance sheet when appropriate to enhance returns to Shareholders and/or to bridge the financing needs of its investment pipeline.
- The Company may decide to dispose of or exit, partially or fully, existing investments in the Company’s portfolio where appropriate and based on the recommendations of the Investment Manager.