Distressed investors are looking to strike more deals as Covid-19 is better understood, especially in China. But due diligence difficulties could restrict such deals to big investors.
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 looming regulation on the classification of debt may prove unfavourable for distressed assets, but the Korean insurer remains unfazed.
Distressed fund managers with the support of asset owners are beginning to seek Asia opportunities. They could start in the equity markets, before looking to assets like property.
Asia may be weathering the coronavirus pandemic better than its Western counterparts, but it is nonetheless expected to throw up financing and restructuring opportunities.
Canyon Partners, Cerberus Capital, KKR and MBK Partners are part of a fast-growing wave of fund managers and asset owners looking to Asia for bad debt investment opportunities.