Gramercy has created an approach to performing emerging market assets (as opposed to distressed) in order to utilize our deep emerging market skill on behalf of investors who have interest in the nondistressed sector of the emerging markets. We utilize our selected group of debt and equity covenants, developed over the course of numerous distressed transactions restructured in our other funds, in order to protect investments during the asset ownership period.

Arco functions as a synthetic emerging market bank investing in private assets such as private equity, real estate and real estate related securities, and infrastructure projects, concentrating on extracting value from the performing sector of emerging markets with the appropriate risk/reward characteristics. Arco blends an opportunistic acquisition strategy with risk management expertise to target delivery of consistent returns on equity with muted downside deviation. Utilizing Gramercy’s extensive sourcing network, Arco targets investment situations that are beyond the current reach of the public and private capital markets, performing assets with high current yields, and less liquid than publicly traded investments and leverages Gramercy’s approach of gaining deep familiarity with a market or credit event and vigorously participating to shape the eventual investment outcome.