Prior to 2008, Asia was already the world's largest distressed debt market with over US$2 trillion of bad loans. A number of factors, including the lingering effects of the Asian Financial Crisis, lax lending policies, the introduction of mark-to-market accounting and geopolitical tension had converged to create unprecedented opportunities to acquire distressed assets.

Today, the global financial crisis has made the Asian distressed debt market even broader and more attractive. The newly distressed assets are of high quality, as the distress is triggered by tight credit conditions, not flawed business models. Despite massive bailout packages, many companies are expected to default in the coming years.

Our strategy is designed to identify good companies that have failed as a result of overleveraging. Although we prefer a late-stage, event-driven approach, we have also led many of Southeast Asia's largest workouts. We also have significant turnaround management expertise, having pioneered the distressed private equity market in Southeast Asia.

Our process is based on research, trading and skilled negotiation, not court battles. We have strong relationships with regional banks, providing us with steady and often exclusive deal flow, especially in the form of senior secured loans. Despite volatile markets, our aim is always to preserve capital.