Korea Investment & Securities Successfully Brokers $40 Million Overseas Secondary Investment

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 5th that it facilitated a $40 million overseas secondary fund investment through its New York local corporation.

'Secondary investment' refers to transactions where private equity funds sell their equity stakes in companies to other private equity funds or similar entities. This investment type is more active overseas than domestically, with institutional investors often engaging in such transactions to rebalance portfolios or secure liquidity.

Domestic institutions, including the National Federation of Fisheries Cooperatives, purchased equity portfolios held by overseas pension funds. The portfolio consisted of 40 blind funds and 30 co-investment project funds. The purchase was made at a 30% discount compared to the net asset value (NAV) at the end of 2022, offering a price advantage over the market average discount rate of around 15%.

The New York local corporation played a catalytic role in leading domestic institutions' investment demand by guaranteeing total acquisition during the deal brokerage and sell-down process. The National Federation of Fisheries Cooperatives, as a major investor with a $20 million investment, played a decisive role in deal completion and closing by actively utilizing domestic and international asset management networks.

Unlike typical domestic secondary investments conducted through blind funds formed by global private equity firms, the project fund format led by domestic asset managers received favorable evaluations.

A representative from Korea Investment & Securities explained, "As institutional investors' liquidity needs and unexecuted investment funds increase amid uncertain market conditions, demand for secondary investments, which can offer more stable returns compared to new investments, is expected to continue growing." They added, "We plan to continue providing high-quality investment opportunities to domestic institutions and build a track record in overseas markets."

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