KIC Discusses Private Bond Investment Outlook with Korean Institutions Entering the US Market

[Asia Economy Reporter Kwangho Lee] Korea Investment Corporation (KIC) announced on the 18th that it held the 53rd New York International Financial Council on the morning of the 17th (local time) at the New York Consulate General conference room, hosted by the New York branch.

The meeting was attended by about 20 investment officers from domestic financial institutions including government officials such as financial attach?s stationed in New York, public investment institutions, securities firms, and banks.

Scott French, Partner at HPS Investment Partners (HPS), the largest private debt fund manager in the U.S., and Head of the Strategic Investment Partner Fund division, stated in his presentation that “due to characteristics such as relatively fast fundraising speed and flexible loan structures and terms, the private debt market is rapidly growing as an alternative to the existing fundraising market.”

He also explained that private debt has recently attracted attention due to the reduction of corporate loans by financial institutions, contraction of the high-yield bond issuance and leveraged loan markets, and forecasted that private debt investment would present opportunities as difficulties in fundraising in traditional markets continue.

Regarding the recent slowdown in fundraising and decrease in new commitments by private debt managers, French emphasized that “the high negotiating power of large managers in determining key fundraising conditions such as pricing and legal terms is becoming the core competitive advantage in private debt investment.”

Shin Yong-seon, Head of the KIC New York branch who hosted the meeting, said, “This was a meaningful opportunity to discuss with market participants various aspects of private debt investment opportunities and risks amid the rising interest rate phase where corporate loans in the traditional fundraising market are becoming difficult.”

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