3 Degrees, which will act as investment manager, also manages the Asian Debt Fund, an Asian distressed debt fund that has been active since 2004.

The firm says that in Asia debt prices have corrected far more sharply than in the US and Europe. This is driven by technical factors, as Asian investment banks unwind their portfolios, global hedge funds close their Asian operations, and capital is generally pulled from the region.

3 Degrees says this is not justified. Asian credits are much stronger than they were ten years ago, and they are fundamentally more sound than their counterparts in the US and Europe. As such, the investment manager believes that this has created an unprecedented opportunity to acquire high quality assets at severely depressed prices.

ADF Prime aims to capitalise on the systemic inefficiencies endemic to Asian credit markets. It will invest in senior secured loans and bonds, high yield bonds, convertible bonds, and private placements issued by high quality borrowers that are being sold at a significant discount to their intrinsic value.

It will target companies that either have, or can generate, enough cash flow to repay maturing debt without dependence on capital markets. The fund seeks annual, unlevered net returns in excess of 25 per cent. It will be co-managed by Moe Ibrahim (pictured) and Jeff Tolk.

ADF Prime is also available to institutional investors and ultra high net worth individuals via the firm's managed accounts platform.