KIC Discusses Private Equity Trends and Investments with Institutions Entering London

[Asia Economy Reporter Kwangho Lee] Korea Investment Corporation (KIC) hosted a meeting to discuss private equity market trends and future investment opportunities together with the Korean government, public investment institutions, private financial institutions based in London, and the global asset management firm Apax Partners.

KIC announced on the 24th that it held the 20th London International Financial Cooperation Council on the morning of the 23rd (local time), organized by its London office.

The meeting was attended by investment officers from domestic financial institutions including government officials, public investment institutions, securities firms, and banks, as well as financial attach?s based in London.

Salim Nathoo, a partner at Apax, stated that the current paradigm of the private equity market is “when the normal investment rules operate again.” He explained that while atypical investment strategies of buying assets at high prices and selling them at even higher prices were effective under the low-interest-rate environment following the 2008 financial crisis, the investment environment has changed due to last year’s interest rate hikes, inflation, stock market corrections, and increased volatility.

In particular, high-growth software companies, unprofitable tech firms, and industries heavily influenced by commodity prices and inflation have experienced significant valuation adjustments for profit-taking. However, considering that private equity returns were higher than other periods immediately after the dot-com bubble and the financial crisis, the recent price adjustments are expected to present good mid- to long-term opportunities.

Furthermore, key future private equity investment opportunities were identified as ▲ corporate spin-offs and divestitures ▲ transactions through the secondary market ▲ private investments in public equity (PIPE) in delisted companies.

Apax, founded in 1972, is a private equity firm managing approximately $60 billion in assets across four core sectors: technology, services, healthcare, and internet.

Park Jin-sung, head of KIC’s London office and organizer of the London International Financial Cooperation Council meeting, said, “It was a valuable time to share diverse investment opinions and market outlooks on private equity strategy formulation after a sharp decline in corporate values and to consider these issues together from the perspective of institutional investors.”

As a sovereign wealth fund, KIC holds international financial cooperation councils through its overseas offices located in global financial hubs such as New York, London, Singapore, and San Francisco. It shares excellent overseas investment information with domestic public and private financial institutions operating abroad and establishes mutual cooperation systems.

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