Ashmore Targets Smaller Investors

Ashmore, the major EM investor, is planning a €500m LSE IPO through Goldman Sachs and JPMorgan to give smaller investors exposure to EM special situations. The shares will be listed for Ashmore Global Opportunities Limited (AGO), a newly incorporated closed-ended investment company. It will promptly deploy proceeds across Ashmore’s EM funds, including dollar debt, local currency, equity and corporate high yield, with a principal focus on special situations, meaning private equity and distressed debt. AGO will have guaranteed capacity of up to 25% in all future Ashmore Special Situations focused funds. This will include the ability to make a commitment upon closing the IPO of up to 25% or $400m in GSSF4, Ashmore’s most recent Special Situations fund, together with the ability to make direct special situations investments. Proceeds not initially invested in GSSF4 will be invested in AMSF, Ashmore’s multi-strategy fund, and other Ashmore managed funds. Ashmore says that none of the costs of the IPO will be borne by AGO, which will have a majority of independent directors. The board will have authority to buy back up to 14.99% of shares annually. AGO will offer three classes of voting ordinary shares, trading in USD, euros and sterling.