Shinhan Financial Group Forms $200 Million Global Dedicated Fund with US-based KKR

Exclusive Customized Fund Established Solely for KKR and Shinhan Financial Group

$150 Million for PEF, $50 Million for Real Estate and Infrastructure

Shinhan Financial Group announced on the 9th that it has established a global dedicated fund worth 200 million USD in partnership with KKR. The photo shows Shinhan Financial Group Chairman Cho Yong-byeong (right in the photo) and Joseph Bea, Co-CEO of the US-based Kohlberg Kravis Roberts (KKR), signing a global alternative investment partnership agreement and posing for a commemorative photo at Shinhan Financial Group headquarters located on Sejong-daero, Jung-gu, Seoul, on September 21, 2018. Photo by Shinhan Financial Group.

[Asia Economy Reporter Jo Gang-wook] Shinhan Financial Group announced on the 9th that it has established a $200 million exclusive fund for Shinhan Financial Group in collaboration with the U.S. private equity firm Kohlberg Kravis Roberts (KKR) to strengthen its global alternative investment capabilities.

The newly established fund is an exclusive customized fund solely for Shinhan Financial Group that invests in various global investment products held by KKR according to an asset allocation strategy mutually agreed upon by both parties. Notably, unlike typical investment methods, this fund allows consultation between the two companies at each stage of fund management, including asset allocation and investment decisions. Through this, Shinhan Financial Group explained that it has gained the opportunity to participate in the entire decision-making process of KKR’s investments and directly transfer KKR’s global investment experience and capabilities.

For the portfolio of the first customized fund, Shinhan Financial Group selected the PEF sector, where KKR has achieved outstanding performance. Through Shinhan Alternative Investment Management, subsidiaries including the bank, financial investment, life insurance, and Orange Life jointly decided to invest $150 million. Additionally, the remaining $50 million will be invested in the real estate and infrastructure sectors, which can pursue stable investment returns, and preparations for raising additional funds are currently underway.

Shinhan Financial Group and KKR signed a 'Global Alternative Investment Partnership Memorandum of Understanding (MOU)' in September 2018 and have been promoting various collaborations. Going forward, both parties plan not only to continuously expand the size of the customized fund but also to pursue partnerships in various areas beyond global alternative investments.

Founded in 1976, KKR is a global investment firm with 21 offices in 16 countries across 4 continents, managing approximately $194.7 billion in assets as of December 2018.

Cho Yong-byeong, Chairman of Shinhan Financial Group, said, "Through the establishment of an exclusive customized fund with KKR, we have created a great opportunity to enhance the group’s alternative investment returns," adding, "We will further strengthen cooperation with global asset management firms such as KKR to elevate the group’s global alternative investment capabilities to world-class levels."

This content was produced with the assistance of AI translation services.