<article>Hong Kong-based private equity firm <a href="https://www.dealstreetasia.com/stories/55572-55572/" target="_blank" rel="noopener">PAG </a> is all set to raise up to $300 million for distressed debt investments in China, a vehicle that will be a sidecar to PAG&#8217;s existing $1.4 billion PAG Asia Special Situations Fund II.</article>

Hong Kong-based private equity firm <a href="https://www.dealstreetasia.com/stories/55572-55572/" target="_blank" rel="noopener">PAG </a> is all set to raise up to $300 million for distressed debt investments in China, a vehicle that will be a sidecar to PAG&#8217;s existing $1.4 billion PAG Asia Special Situations Fund II.
According to a report from Private Equity International, the vehicle is set to expand opportunities for the investors who want greater exposure to the non-performing loan (NPL) market in China.
However, only a certain amount of the Special Situations Fund II can be invested in <a href="https://www.dealstreetasia.com/stories/74802-74802/" target="_blank" rel="noopener">China assets</a> based on agreements with Limited Partners which calls for raising of a separate vehicle, the report said.
This $300 million sidecar fund is not under PAG Asia Capital which is PAG&#8217;s private equity strategy but under PAG as a whole and a part of its absolute returns strategy.
PAG’s first special situations fund that was worth $991 million is now fully invested.
China&#8217;s NPL market is one which has attracted global investors who had earlier stayed away from this market fearing legal hassles. Though, in the past few months many global and regional private equity firms have started investing in these assets.
Along with PAG, other private equity players like Lone Star or Oaktree Capital started warming up to the huge opportuntity generated by the Chinese bad debt market that was estimated at above $3 trillion last year. Non-performing loans spiralled and called for action from government which included securitising NPLs.
PAG has also raised $3.6 billion for its second Asian buyout fund PAG Asia II LP fund.
Also Read:
<a href="https://www.dealstreetasia.com/stories/74802-74802/" target="_blank" rel="noopener">ShoreVest launches $750m fund to tap NPL portfolios in China</a>
<a href="https://www.dealstreetasia.com/stories/distressed-funds-find-treasure-in-chinas-mounting-bad-debts-68689/" target="_blank" rel="noopener">Distressed funds find treasure in China’s mounting bad debts</a>

PAG to raise $300m vehicle for China distressed debt market: Report

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PAG to raise $300m vehicle for China distressed debt market: Report

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