Ex-Mizuho star credit strategy manager Jeffrey Yap is to launch an Asian macro fund, focussing on Asian credit strategies, long/short credit, bonds and private debt. The fund will have the ability to invest globally where it sees fit.
Yap is launching with a commitment of $100m in seed capital from an unnamed seeding source. $50m arrives on day one, and the remainder within the year. The fund will be prime broked by Goldman Sachs and Merrill Lynch. Yap is currently on gardening leave from Mizuho but is putting together a team of five to support him in his new business.
In an interview with Opalesque, Yap said: "There seems to be more interest in Asian credit in general at the moment. It is somewhat in the infancy stage but it has grown over the last couple of years. Asian credit used to be seen only in a hard currency perspective in US dollars for instance, but post-Lehman the global currency market has grown in size and the borders between offshore and onshore have come down a bit."
Yap is targeting returns of 15% over LIBOR for the fund but admits that personally he will be happy with anything above 10% over the long term. "It's an aggressive target" he says, "but Asian credit presents a good opportunity for investors to take advantage of the onshore and offshore market."
(This piece was first published in Opalesque on June 7th.)
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.