Bain works out ways to profit on Chinese NPLs

As soured loans balloon amid China's economic slowdown, the US firm picks through the debris for collectable property assets.

Bain Capital has figured out a way to make fat returns investing in Chinese non-performing loans hand pick loans backed by saleable property and turf out dead-beat borrowers who are big employers.

Bain Capital Credit, the fixed income arm of Boston-headquartered Bain Capital, said on Monday it had bought a portfolio of non-performing loans NPLs in China worth $200 million.

The US firm bought the loan portfolio from one of China’s state-backed bad loan banks, China Huarong Asset Management, a person familiar with the matter said. Bain Capital declined to comment on the identity of the seller.

Bain Capital Credit spent weeks...

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