The German insurer's recent investment in Kotak’s real estate debt platform is the latest sign that global asset owners are continuing to eye Indian private credit strategies.
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.