As COVID-19 pushes up global investors’ demand for distressed opportunities in Asia-Pacific, alternative investment manager Ares SSG is prioritising downside protection before making additions to its portfolio.
There is “a healthy and strong demand” from investors worldwide to allocate money to emerging markets in Asia, especially to the distressed and special situations space, said Ares SSG’s managing partner and CEO Edwin Wong, during a fireside chat at the Asia PE-VC Summit 2021. “It is clear that the opportunity set is unique in Asia and will not go away anytime soon.”
Wong was speaking at a fireside chat titled Consolidation & turnaround trends to boost demand for alternative capital in Asia.
“The most important thing” amid the global health crisis for Ares SSG – which focuses on credit investment across the Asia Pacific – is downside protection before “adding any more risks to the books,” Wong added. “As a firm, we probably spend 30-40% of our time on risk management versus finding new transactions.”
Catch the full video of Wong’s fireside chat with Eudora Wang, senior reporter, DealStreetAsia.