Stressed assets and nonperforming loans
Some private-equity China funds and foreign direct investments in Chinese companies established over the last ten years are now struggling to realise value. Through leveraging its experience and deep networks, Mahon China has assisted investors in a range of difficult situations.
In the last five years, Mahon China achieved exits from approximately 65% of the assets it managed. Mahon China also provides its clients with an informed, independent view when stressed assets have no further recoverable value and should be written off.
Our clients include limited partnership funds, international banks, and development finance institutions.
Scope of services:
• Managing distressed private-equity funds, by appointment of the fund’s limited partners
• Undertaking investigations and due diligence, buyer identification, and assisting investors and fund managers to stabilise investments
• Managing, restructuring, and exiting nonperforming loans and stressed equity positions held by international financial institutions
Mahon China began managing private-equity China funds in 1992 as one of the country’s first fund managers. The firm has managed five funds totalling approximately USD 300 million, with investments made into 29 companies in sectors including agriculture, textiles, optical instruments, automotive parts, construction equipment, FMCG, and IT and telecommunication services.
Mahon China has consistently achieved high returns for its investors while fulfilling social and developmental responsibilities to investee regions. The investors have included development finance institutions, European and Asia-Pacific financial entities, and Chinese state-owned enterprises.
Selected investment track record
> Chang’an Automobile Group
> Lingyun Industrial Corporation Ltd
> Ningbo Tian’an (Group) Co. Ltd
> Tsinghua Tongfang Co. Ltd
> ET Solar Group
> Shinho Food Co. Ltd