Unable to access China's distressed assets directly, international private debt buyers have tied up with local partners and are building teams to identify opportunities.
Asset owners and managers alike have flocked to the distressed debt universe, but the CIO of Korea’s Public Officials Benefit Association has so far not invested into such assets.
The Canadian pension plan’s investment into Indian distressed assets is being driven by gradually improving fundamentals, said its global head of credit investments.
Investors with an allocation of 15% or more to private assets tend to achieve better overall performance, finds a study of endowments and foundations by Cambridge Associates.
But the $93 billion alternatives manager would have to 'retool' to make a big play in private equity in the region, said chairman Howard Marks.
Distressed and illiquid assets specialist SC Lowy will likely gain a portfolio of South Korean non-performing loans by acquiring Shinmin from a troubled construction firm.
Distressed specialist Oaktree will gain unprecedented access to China's non-performing loan sector through a partnership with Cinda, the mainland's biggest bad bank.
Dragon Capital says Vietnam Asset Management Co could open up distressed bank debt opportunities in the country, but Fitch Ratings is less convinced.
Corporate turnarounds and restructurings are tipped to increase in number, with South Korea and Greater China to see the most activity, according to AlixPartners.
The insurance arm of Korea Post wants private-equity fund managers to team up with local brokers and pitch.
Panellists at the AsianInvestor and FinanceAsia Asia-Pacific Debt Investor Forum mull over why demand for Chinese distressed assets is relatively low.
The FinanceAsia and AsianInvestor 2nd Annual Global Recovery Investing Summit took place on May 4-5 at the Renaissance Harbour View Hotel in Hong Kong