Adamas Finance Asia Limited says the Greater China Credit Fund, into which it has invested US$4 million, has returned investment capital of approximately US$700,000 to the company as a result of the fund's exit from Project Media announced on 6 July, and has also paid investment interest of US$120,000 for Q2 2016.
GCCF was established by ADAM's investment adviser, Adamas Asset Management (HK) Limited, to provide secured financing for operationally-strong growth companies in China.
As such, the Fund addresses the trillion dollar funding gap that exists for SMEs across Greater China, capitalising on the inefficiencies of the "grey banking" finance industry.
It uses a mix of debt, convertible instruments and structured or preferred equity to minimise investment risk. It is a closed-end structure targeting a return of 15%-18% net internal rate of return (IRR).
ADAM initially invested US$1 million into GCCF in August 2013, and followed this with a further US$3 million in March 2016.