China distressed asset manager DCL raises $455m

DCL currently manages both the renminbi and US dollar-denominated funds with total assets under management of about RMB10 billion.

Institutional LPs represented about 95% of the corpus in the new fund, including insurers, banks, security firms, state-owned enterprises, local government investment platforms, fund-of-funds, university endowments, and top family offices. The fund has completed its first round of investments and has realized a number of exits.

Since its inception in 2015, DCL identified the distressed investment opportunity emerging quickly against the background of economic transition and industrial transformation. It has created a “pyramid-shaped” strategy comprising three parts: non-performing loans (NPLs) , distressed real asset restructuring, and distressed corporate restructuring.

The firm has a strong preference for the core assets in China’s core economic regions. This includes first-tier cities and core cities in first-tier economic areas such as the Yangtze River Delta Region and Pearl River Delta Region. It aims to obtain low-priced core assets, improve operations, polish the hidden champions of sub-asset products, and achieve long-term stable returns.

One example is Beijing’s Zhongguancun Weibo Times Building, which opened in March as scheduled. DCL acquired the asset last year, completed all tax clearance and transfer procedures within one month, and started the construction design process. The renovation was completed in December 2019.

Recently, Feng Hai Shipping Company, the largest private shipowner in China’s domestic ocean liquid cargo transportation announced that its bankruptcy case was settled, and DCL Investments would wholly-own the business.

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• Topics
• Greater China
• Fundraising
• Credit/Special Situations
• China
• Renminbi
• DCL Investments
• Distressed