In seeking to capitalize on the growing number of private equity investment opportunities in the Asia Pacific region, with primary emphasis on Japan and Greater China, we are committed to maintaining Oaktree's emphasis on risk control.

"A number of economic, structural and market forces at work in Asia make the region attractive for principal investments," says Bill Kerins, the Principal Investments Group's senior officer in Asia, "including strong economic growth trends, inefficient equity markets, and structural reforms in key financial, government and legal institutions."

But identifying upside potential alone is not the key to profitable investments in Asia. Our watchwords must be caution, discipline, and selectivity. We favor business sectors where Oaktree has prior experience and expertise. Among the companies and industries that receive the most focus are those that exhibit:

• solid revenue and profit growth, but low valuation multiples
• a need for capital and strategic counsel,
• strong local brands which could benefit from low-cost manufacturing, and
• cross-border investment potential.

Click here for information regarding risk disclosures associated with the strategy.