Development finance institution IFC and Asia-focused credit and special situations fund manager Clearwater Capital Partners have agreed to invest US$150 million in distressed assets in Asia through special purpose vehicle DARP SPV Clearwater 2 (SPV). Clearwater will commit US$75 million in junior debt to the vehicle through Clearwater Fund V, while IFC will commit US$50 million in senior debt and US$25 million in junior debt through its Distressed Asset Recovery Program (DARP). The SPV will target distressed and special situations assets in Asia, including China, India, Indonesia, Philippines, Thailand and Vietnam. The transaction is pending internal IFC approval.