Fund managers are raising billions of dollars to scoop up soured loans as growth in the world’s second largest economy slows, but a full-blown Chinese debt crisis remains a distant prospect.
Private equity firms KKR, PAG, and Baring Private Equity Asia are all raising funds from investors, hungry for the extra yield offered by alternative products such as non-performing loans NPLs.
Boston-headquartered Bain Capital has already raised $557 million for special situations in Asia, according to a regulatory filing. In May it bought a portfolio of NPLs in China worth $200 million.
However, as yet the pickings are...