Private credit might be less attractive than it was last year as investors rush into the market, but there are sweet spots to be found.
Pangaea is a special situations fund, with two-thirds of its investments focused on the real estate sector, in which field it covers distressed debt, unbundling property from corporate structures, securitizations, plus direct property holdings and developments.
The firm was established in 2005 by Robert Zulkoski. Its investors have placed $700 million with the firm, which, after leverage, is reflected in $2 billion in assets being managed.
ôWe made an aggressive start-up in 2005, and deal flow is running ahead of capital raising,ö Robert Zulkowski told Asian Investor. ôThis transaction will help Pangaea to attend to future capital raisings, as well as provide us with cross-border expertise on certain complex deals.ö
Zulkowski will now take the role of handling OaktreeÆs real estate business in Asia, along with the 25-strong team that he built at Pangaea.
Zulkowskt launched Colony CapitalÆs Asian business in the late 1990Æs along with John Brady, who is currently OaktreeÆs global head of real estate.
Oaktree currently has $50 billion in assets under management. In addition to offices in Beijing and Singapore, Oaktree opened up in Hong Kong in November 2005 and appointed Ralph Parks, former CEO of JP Morgan Asia Pacific, as the chairman of the Oaktree Hong Kong subsidiary. In August 2007, Oaktree closed its first Asia-specific private equity fund. Named as the OCM Asia Principal Opportunities, it has raised $577 million.
Regulators keep their eyes open on tightening insurance industry by introducing more detailed risk management requirements, which could bring pressure on smaller players.
China and India are more obvious choices for AustralianSuper to consider in Asia Pacific, but the super fund currently lacks the expertise and prefers to stick to the US and Europe.
CDPQ's Ivanhoe Cambridge hires ex-GIC real estate expert; NZ Super adds board member; Future Fund appoints chief people officer; BlackRock real estate CIO joins Singapore's Capitaland; AMP Capital hires MD for energy; Northern Trust AM names new CIO; T Rowe Price hires AU and NZ institutional head; Nuveen hires Southeast Asia institutional head; Citi names sustainability head in Singapore; and more
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains