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Oaktree Capital says India a key market, another growth engine in 3-5 years

Oaktree, which has about $100 billion of assets under management, doesn't have an onshore presence in India

Denise Wee | Bloomberg 

stressed assets, Income tax
Illustration: Ajay Mohanty

Oaktree Capital Group LLC, one of the world’s largest distressed debt investors, is eyeing as a key market as the nation overhauls its bankruptcy rules and banks battle with a historic bad debt clean-up.

“I wouldn’t be surprised to see as another engine of growth maybe in the next three to five years,” said Jay Wintrob, chief executive officer at the Los Angeles-based firm, in an interview in Hong Kong. “We are spending a lot of time in India, getting up to speed.”

India’s $210 billion pile of and distressed borrowers have attracted from Varde Partners to JC Flowers & Co. The nation’s so-called dirty dozen -- 12 large debtors that have been ordered to go through the bankruptcy courts -- are testing the country’s insolvency rules. A high-profile default by Reliance Communications Ltd. is also proving a litmus test for how get treated.

Oaktree, which has about $100 billion of assets under management, doesn’t have an onshore presence in India, and currently invests a “very, very small amount” in the nation, according to Wintrob.

Local Partners

“We have yet to open our first Oaktree office in That’s something we have considered,” said Wintrob. “I think we are looking to form one or more local partnerships.”

The distressed debt investor has seven offices in Asia, including ones in Hong Kong, Singapore, Shanghai and Beijing. Wintrob said that “under the right circumstances,” his firm may open a physical office in at some point.

Oaktree is following the limited number of in and feels optimistic about how those proceedings are going, said Wintrob. Potential ways to expand in the nation could include setting up or investing in non-banking financial and India’s bad loan buyers, or so-called asset-reconstruction companies, he added.

The firm is looking to lend directly to in and also invest in bad loan portfolios, and is looking at sectors including energy and infrastructure, according to Wintrob. He declined to say whether Oaktree is looking at the dirty dozen.

First Published: Thu, April 12 2018. 07:46 IST
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