Chinese distressed asset investor DCL closes new RMB fund at $454m

Photo by Josh Appel on Unsplash

DCL Investments, a distressed asset investment firm backed by Chinese alternative asset manager CDH investments, announced on Tuesday the completion of a new RMB-denominated fund at 3 billion yuan ($454.5 million).

About 95 per cent of the new fund’s limited partners (LPs) are institutional investors, including insurance companies, banks, securities companies, state-owned enterprises, investment platforms funded by Chinese regional governments, funds of funds (FOFs), university endowments, and family offices, said the firm in a WeChat post.

The closing of the fund comes as fund managers worldwide have stepped fundraising efforts in anticipation of potential defaults accelerated by a global market downturn caused by the COVID-19 pandemic.

Combining distressed debt, special situations, and turnaround strategies, dry powder in the overall distressed private capital space reached an all-time record of $131 billion globally as of June 2020, according to data from Preqin. Distressed investors raised a combined $9.6 billion in Q2 2020, the highest in two years.

Founded in 2015, DCL Investments focuses on China’s distressed asset investment opportunities, covering non-performing loans (NPLs), distressed real asset restructuring, distressed corporate restructuring, and beyond.

Geographically, the firm mainly invests across eastern China’s Yangtze River Delta, northern China’s Pearl River Delta, and first-tier cities including Beijing, Shanghai, Guangzhou, and Shenzhen.

DCL Investments’ first two funds each raised 3 billion yuan in 2015 and 2017, respectively. According to its website, the firm currently manages several RMB and USD-denominated funds with about $1.5 billion in total capital commitments.

The firm has offices in Beijing, Shanghai, Shenzhen, Hangzhou, and Nanjing. It plans to build a presence in Hong Kong.

In February 2020, DCL Investments invested in the restructuring of Dongguan Fenghai Ocean Shipping Co Ltd, a Chinese provider of inbound and outbound shipping services of petroleum products and chemicals.

Fenghai Ocean became a wholly-owned entity of DCL Investments after the transaction. Financial terms of the deal were not disclosed.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.