BlackRock Inc, Schroders PLC and AllianceBernstein Holding LP are among the international firms with operations in the region that are actively buying up mainland China private credit, private equity and distressed debt assets that in some cases offer steep discounts. One such target is software and services companies that have robust revenue streams from a blue-chip client base but few assets, said Simon Chan, director, Asia Pacific private credit team for BlackRock. The lack of assets means such firms may struggle to persuade banks to underwrite their funding activities, prompting them to turn to private sources, Chan said at a panel at the ASIFMA China Capital Markets conference in Hong Kong on Tuesday. While US-dollar fundraising for China private equity deals has slowed, local currency fundraising remains active. In yuan private equity funds, up to 70% of limited partners are not institutional investors and discounts on secondaries deals are common, according to Jun Qian, head...
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