US distressed debt giant Oaktree sets up wholly owned unit in Beijing

Beijing, China. Photo: Raj Eiamworakul/ Unsplash

US distressed asset manager Oaktree Capital Management has set up a wholly owned unit in China seeking direct access to the country’s bad loan market.

The unit, Oaktree (Beijing) Investment Management Co, was set up with a registered capital of $5.42 million, Beijing’s financial regulatory department said in a statement on Monday.

As part of the Phase 1 trade deal between China and the US, China will allow US firms to apply for asset management company licenses, and allow them to acquire non-performing loans directly from Chinese banks. Currently, foreign asset managers can only buy Chinese distressed assets through local bad loan companies.

Oaktree is the first foreign distressed debt manager to set up a wholly owned unit in China following the deal.

Based in Los Angeles and established in 1995, Oaktree has already invested a total $6.5 billion in China’s distressed debt market, the statement showed.

It invested in China through various joint ventures previously, including one with state-run asset management company China Cinda Asset Management. Oaktree already owns a unit in Shanghai that helps the Chinese invest in overseas distressed assets.

Oaktree did not immediately respond to a Reuters request for comment.

Reuters

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.