Oaktree Capital says India a key market, another growth engine in 3-5 years

Oaktree Capital Group LLC, one of the world’s largest distressed debt investors, is eyeing India as a key market as the nation overhauls its bankruptcy rules and banks battle with a historic bad debt clean-up.

“I wouldn’t be surprised to see India as another engine of growth maybe in the next three to five years,” said Jay Wintrob, chief executive officer at the Los Angeles-based firm, in an interview in Hong Kong. “We are spending a lot of time in India, getting up to speed.”

India’s $210 billion pile of stressed assets and distressed borrowers have attracted global funds from Varde Partners to JC Flowers & Co. The nation’s so-called dirty dozen -- 12 large debtors that have been ordered to go through the bankruptcy courts -- are testing the country’s insolvency rules. A high-profile default by Reliance Communications Ltd. is also proving a litmus test for how foreign creditors get treated.

Oaktree, which has about $100 billion of assets under management, doesn’t have an onshore presence in India, and currently invests a “very, very small amount” in the nation, according to Wintrob.