They include Banny Leung, a former director in PCG at Merrill, who will become a senior partner in Hong Kong responsible for Asian special situations.

Leung joins a team which now numbers eight people, four in mCapital's Hong Kong office and four in London. The fund, the European and Asian Special Situations Fund, aims to have AUM of USD300-500m at inception.

It will focus on stressed, distressed, recovery and development capital in Europe and Asia with the objective of providing 15 per cent plus annualised return over the economic cycle.

The Hong Kong team will be augmented further with the arrival of Miko Zhou, who will become an associate. At mCapital, she will be reunited with James Kwok, a former director in PCG who was appointed partner for Asian special situations last month. Devonshire (pictured), the firm's chief executive and chief investment officer will base himself in Hong Kong.

In London, the mCapital European investment team is ready for launch. It will be headed by Anthony Duyck, another alumnus of Merrill's PCG, who will be appointed a senior partner. Other appointees are James Enck, (senior partner with specific responsibility for the Telecom & Tech sector), Jusdeep Judge, (partner), and Heena Patel (business manager). All previously worked with Devonshire in PCG at Merrill.

Devonshire has 22 years' experience in global alternative asset markets and established the European and Asian operations of PCG at Merrill Lynch in 2003. Prior to this, he managed money for a number of banks, including Standard Bank in London and Hong Kong.

'I am very pleased that we have been able to attract such a level of talent to mCapital - and I know they're talented because I've worked with them all before,' says Devonshire. 'The principal advantage of recruiting a team that has worked together before is that we will hit the ground running as we launch later this month.'