Orient Longxin Capital |
In 2017, LVF Capital formed Orient Longxin Capital (“OLX”) in partnership with Chinese state-owned enterprise, China Orient Asset Management, to invest in distressed Chinese real estate.
In the same year, OLX raised its first fund of $500 million, Orient Longxin Fund I (“The Fund”). The Fund’s investment strategy takes advantage of the stress and distress in real estate that arises from China’s misallocation of capital and changing government policies. OLX seeks to benefit from the need to recycle capital trapped in distressed assets as the Chinese economy begins to slow and mature.
In 2017, LVF Capital formed Orient Longxin Capital (“OLX”) in partnership with Chinese state-owned enterprise, China Orient Asset Management, to invest in distressed Chinese real estate.
In the same year, OLX raised its first fund of $500 million, Orient Longxin Fund I (“The Fund”). The Fund’s investment strategy takes advantage of the stress and distress in real estate that arises from China’s misallocation of capital and changing government policies. OLX seeks to benefit from the need to recycle capital trapped in distressed assets as the Chinese economy begins to slow and mature.
OLX works with and sources transactions from:
- Entities or projects in stress, turmoil or transformation
- All four China State Owned Enterprise Asset Management Companies
- Provincial AMCs
- Banks, trust companies and other lenders with problem loans and borrowers in distressed situations
- Local governments and authorities
OLX is focussed on:
- Disposals of NPL assets and portfolios
- Resolving local distressed situations
- Short to medium term investing with a premium or high fixed return (e.g. gap or bridge financing)
Key transaction characteristics:
- Transactions where there are identifiable issues or problems we can help solve
- Transactions that require a combination of specialist knowledge (bankruptcy, real estate, etc.), structuring skills, capital markets expertise and relationship management
- Collaborative transactions where OLX shareholders take an active role
- Non-competitive transactions
- Full transparency on deal structure with flexibility to secure optimal risk return position
- An ability to work closely with local partners and local governments to ensure there is an alignment of interests and a clear and timely exit strategy
OLX’s extensive and deep relationship networks within China:
- Provide sources of attractive investment opportunities
- Reduce substantially due diligence expenses including time and opportunity costs
- Leverage our expertise and supplement our capital with co-investment deals
- Assist in identifying and introducing suitable third parties to transactions when a multi-party solution is required to resolve a special situation
- Ensure we have access to the necessary government agencies/people
- Enable thorough coverage of chosen geographical areas
- Diversify investments to mitigate deal-specific risks
