Distressed debt fund moves to Harbour Capital platform

Harbour Capital, the London-based hedge fund investment management platform, has added mCapital Fund. The fund, run by former Merrill Lynch prop desk co-head Mark Devonshire. The distressed debt fund is set to launch in February 2009 with a target assets under management of $500 million.

Since November 1, Devonshire has been working with high profile seed investors. He believes soft commitments from investors could total over $300 million.

The fund will focus on stressed, distressed, recovery and development capital in Europe and Asia. It aims to provide 15+% annualised return over the economic cycle.

Devonshire has 22 years' experience in global alternative asset markets, most recently at Merrill Lynch, where he established the European and Asian operations of the principal credit group, an independent $3 billion proprietary investment unit.

The mCapital fund will be looking at what Devonshire calls 'fulcrum securities'. "These are stakes in good companies in Europe and Asia that are at the tipping point and could go under or, with our help, be saved," he said.

"Global markets are under the greatest stress since the Great Depression, which creates enormous opportunities for a company with the experience, skills and determination of m Capital," concluded Devonshire.

The mCapital fund will be based in London and Hong Kong. Initially it will employ a team of 11 experienced investment professionals, all of whom have worked with Devonshire in the last 16 years.

Harbour can provide a suite of support services, including licensing in London and Hong Kong, legal counsel, risk control systems and trading and offices.