Partners establish new platform to focus on credit and distressed
opportunities in China
China Orient Asset Management (International) Holding Limited ("COAMI"),
China Orient Summit Capital ("COS-Capital") and KKR today announced the
formation of a strategic partnership to co-invest in credit and
distressed opportunities in the Chinese market and explore strategic
initiatives for broader collaboration.
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The investment and asset management platform will focus on opportunities
in China across a range of returns, benefiting from the unique
capabilities and strengths of each of the partners. The platform brings
together COAMI and COS Capital's unique combination of deal sourcing
capability and China asset management expertise, and KKR's investment
experience and network around the world and in China.
Guoxing Zhong, Co-President at COAMI, said, "We believe this partnership
between a state-owned enterprise, a local investment manager and an
international investment firm offers investors a rare opportunity to
benefit from the best practices of all three parties, and we are very
much looking forward to working in partnership with KKR."
David Liu, Member, Co-Head of Asia Pacific Private Equity and Head of
China at KKR, said, "We are excited to enter into this innovative new
partnership with COAMI and COS-Capital, which are experienced local
partners that have track records in sourcing unique opportunities and
active asset management. We look forward to working as a team to
leverage our resources and provide both the necessary capital and the
capabilities to our portfolio."
Edward Han, Managing Director, Head of Special Situations at
COS-Capital, commented, "The new joint venture offers an opportunity to
build a scaled platform to provide flexible capital solutions,
particularly in the real estate sector which is facing increased macro
and funding challenges. We are excited to work with KKR given their deep
investing and funds management experience across real estate, distressed
investing and credit."
China's real estate market has approximately US$3.1 trillion of
outstanding debt, making up approximately 16% of the total lending
market in China, predominantly in the form of commercial bank loans,
trust schemes and wealth management plans, according to the People's
Bank of China ("PBOC"). Amongst the commercial banks in China, PBOC
statistics show that total non-performing loans amount to over US$180
billion. According to KPMG, the majority of the collateral underpinning
these non-performing loans is real estate.
COAMI, COS-Capital and KKR believe the platform will deliver long term
value to their respective businesses and create attractive investment
opportunities for each other and their investors.
China Orient Asset Management (International) Holding Limited ("COAMI")
is an international business platform, wholly-owned by China Orient
Asset Management Corporation ("COAMC"). Established by China's Ministry
of Finance in 1999, COAMC is one of only four licensed national asset
management companies and wholesalers of non-performing loans (NPL) in
China. As of the end of June 2015, COAMC has total assets of
approximately RMB 366 billion and provides comprehensive financial
services to over 8 million clients through its city offices and
subsidiaries nationwide. For additional information about COAMC, please
visit COAMC's website at http://www.coamc.com.cn/.
China Orient Summit Capital Co., Ltd ("COS-Capital") is a specialized
investment management platform that focuses on management of both USD
and RMB investments, onshore mezzanine financing and cross-border
investments. It is a joint venture established in early 2014 by COAMI
and China Summit Capital. China Summit Capital was founded by a group of
seasoned investment professionals with substantial experience in
investment management and project development. For additional
information about COS-Capital, please visit COS-Capital's website at http://www.cos-capital.com/.
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world‐class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at http://www.kkr.com/
and on Twitter @KKR_Co.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160121006587/en/
Jason Yan, +852 3102 3060
Edward Han, +852 3750 6490
New Alliance Consulting International:
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Source: KKR & Co. L.P.
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