Former Goldman traders seek funds to lend to distressed Chinese property developers, target raising US$250 million
- Blue Mountain Bridge Capital plans to raise US$250 million from family offices and wealthy individuals, with as much as half of that expected close by December
- The distressed lender is focused on borrowers with trophy assets, such as real estate, private jets or receivables that can be used as collateral for its senior secured lending
Two former Goldman Sachs traders in Hong Kong are raising money to lend to financially strapped borrowers, including the growing number of down-on-their-luck Chinese property tycoons.
Raymond Chan, most recently co-head of Oaktree Capital Management’s Asia distressed debt business, will be chief investment officer at Blue Mountain Bridge Capital’s new fund. He started at the firm, created by his former Goldman colleague Jenny Sun, this year. The two plan to raise US$250 million from family offices and wealthy individuals, with as much as half of that expected to close by the end of December.
They’re hoping to cash in on the many Chinese property developers whose owners are having “a hard time borrowing from traditional banks,” Chan said in an interview. “That’s where we see a lot of these Hong Kong opportunities.”
Blue Mountain Bridge is the latest private credit money manager to fill the void as banks scale back lending and delinquencies rise with elevated interest rates, making it harder for companies and their founders to refinance debt. In China, where rates have remained lower, real estate developers have faced widespread financial stress following Covid-era restrictions and government crackdowns on leverage in the property industry.
Blue Mountain Bridge’s new fund will make loans with a tenure of one to three years, aiming for returns of about 20 per cent, said Sun, who started the firm four years ago. About half of the fund’s investment will focus on Hong Kong, with the rest in Southeast Asia, Japan and India.
