Many companies are rolling liabilities forward, supported by accommodating government policy intended to maximize liquidity. It can't go on forever, but distress and private debt investors must be careful where they tread
Queensland Investment Corporation (QIC) has been asked by the state government, its ultimate owner, to explore a bail-out for beleaguered airline Virgin Australia Holdings (VAH).
Distress and special situations investors will see plenty of opportunities in Asia’s middle market as companies struggling with coronavirus-driven liquidity issues consider restructuring options, according to debt advisory firm Zerobridge Partners.
Ares Management has agreed to buy a controlling stake in SSG Capital, an Asia-focused credit and special situations fund manager with approximately $6.2 billion in assets under management, including $3.9 billion in dry powder.
The Kotak Special Situations Fund, which is sponsored by an alternative assets arm of Kotak Mahindra Group focused on Indian non-performing loans (NPLs), has reached a final close of $1 billion.
DCL Investments, a China-based distressed debt and special situations manager, is targeting around $500 million for its first US dollar-denominated fund, hoping to leverage renewed interest from foreign investors in this space.
GPs expect a wave of non-performing loan sales in China as the slowing economy leaves banks with more bad debts to resolve, but could the distress investment opportunity be even broader than they envisage?
Abu Dhabi Investment Authority (ADIA) will make an anchor commitment of $500 million to an India special situations fund launched in conjunction with Kotak Private Equity.
Allianz Investment Management, a unit of insurance giant Allianz Group, has invested over $200 million in a private debt platform managed by Edelweiss Alternative Asset Advisors, the alternative investment arm of India’s Edelweiss Group.
Investors are looking to capitalize on the China distress opportunity, and recent activity in around non-performing loans suggests there will be enough deal flow to sate their appetites
CITIC Capital has established a team to make distressed investments in China, primarily in the real estate sector, and is considering raising a fund dedicated to this strategy.
Värde Partners has closed its debut Asia-focused credit fund with approximately $400 million in commitments. The vehicle launched about six months ago with a target of $250 million.
US specialty retailer Brookstone, which was acquired in 2014 by Sailing Capital and Chinese retail conglomerate Sanpower Group, has filed for bankruptcy again and will close its 102 retail stores located in shopping malls.
The Carlyle Group has merged its growth and buyout teams for India in order to streamline operations in the country.
Australian mining services provider Bis Industries has reached a debt-to-equity restructuring agreement with creditors that will see current owner KKR relinquish its majority position.
South Korea has announced plans for a KRW8 trillion ($7 billion) fund – of which half will come from private sector feeder vehicles – as part of government efforts to initiate a more market-based approach to corporate restructuring.
The credit and distress investment opportunity is significant – and expected to grow – but an on-the-ground presence is seen as essential to accessing it, industry participants told the AVCJ China Forum.
STIC Investments has raised $530 million for a fund that will target restructuring opportunities involving Korean conglomerates. Executive Managing Partner Hans Jung explains the strategy
Xiaolin Zhang, co-founder and managing partner at China-focused distress specialist Shoreline Capital, discusses the NPL opportunity and what private equity firms must do to address it
Farallon Capital Management has closed its third special situations fund focused on Asia and Latin America at $1.1 billion.
KKR has formed a partnership with China Orient Asset Management and China Orient Summit Capital (COS Capital) to make credit and distressed opportunities in the country, with real estate likely to be a key area of focus.
China’s slowing growth has created a wave of corporate defaults, and these bad debts should be put up for sale. Not all foreign investors are ready to jump in, though, conscious of the difficulties in extracting value
Corporate restructuring activity in Japan should lead to a broader rise in the number of distress opportunities in Asia, as a result of both regulatory change and added pressure from investors.
Japan’s corporate governance code will not trigger a torrent of non-core divestments, but it may encourage boards to think strategically about how – and with whom – they can improve performance