| HONG KONG
HONG KONG May 29 Bain Capital said on Monday it
has agreed to buy a portfolio of non-performing loans worth $200
million in principal from a Chinese asset management company,
the latest move by international investors seeking a piece of
the booming market for distressed debt in the world's
Bain Capital Credit made the investment as part of its
special situations strategy in Asia, the company said in a
The portfolio of real estate-related loans, including loans
linked to commercial retail assets, hotels and industrial
assets, was Bain's first purchase in China, said a person
familiar with the deal who declined to be identified because
details of the transaction are not public.
The loans were previously with China's biggest distressed
debt manager China Huarong Asset Management Co Ltd,
the person said. Huarong did not immediately reply to a Reuters
request for comment, whereas Bain declined to comment.
When distressed debt investors buy non-performing loans,
they typically pay a few cents on the dollar for the assets,
meaning Bain may have spent as little as $10 million for the
loans based on the value of previous transactions.
The U.S. firm had been looking to raise $1 billion in its
first Asia-focused credit fund, Reuters reported in February.
Bain had previously invested in the region in distressed debt
and so-called special situations transactions through its global
(Reporting by Elzio Barreto)