KIC Discusses Private Bond Investment with U.S. Entry Institutions

[Asia Economy Reporter Park So-yeon] Korea Investment Corporation (KIC) discussed the current status and future investment outlook of the private debt market together with the Korean government and public investment institutions, private financial institutions, and asset management firm HPS Investment Partners (HPS) based in New York, USA.

On the 18th, KIC announced that it hosted the 53rd New York International Financial Cooperation Council on the morning of the 17th (local time) at the New York Consulate General conference room, organized by its New York office.

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

Scott French, Partner and Head of the Strategic Investment Fund division at HPS, the largest private debt manager in the U.S., stated in his presentation that "due to private debt’s relatively fast fundraising speed, flexible loan structures, and terms, the private debt market is rapidly growing as an alternative to traditional financing markets."

He particularly forecasted that private debt investment opportunities would arise as traditional markets face difficulties in fundraising, with corporate loans from financial institutions decreasing and the high yield bond and leveraged loan markets shrinking.

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

Shin Yong-seon, Head of KIC’s New York office and organizer of this New York International Financial Cooperation Council meeting, explained, "As financial costs rise and corporate loans in traditional financing markets become more difficult, we discussed various aspects of private debt investment opportunities and risks with market participants."

KIC operates the International Financial Cooperation Council through its overseas offices located in global financial hubs (New York, London, Singapore, San Francisco) to share excellent overseas investment information with domestic public and private financial institutions operating locally and to establish mutual cooperation systems.

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