Korea Investment & Securities Forms Strategic Partnership with Global Asset Manager Carlyle Group

Subsidiary of Korea Financial Group, Korea Investment & Securities has signed a strategic partnership agreement to establish a long-term partnership with Carlyle Group, one of the world's largest private equity fund (PEF) managers.

The signing ceremony was attended by Jung Il-moon, President of Korea Investment & Securities, and Harvey M. Schwartz, CEO of Carlyle Group.

Through this partnership, Korea Investment & Securities has committed a total investment of $300 million to Carlyle funds and secured opportunities to source overseas credit products worth approximately $4 billion annually. They agreed to build a collaborative relationship with Carlyle through personnel dispatch and information sharing.

The global comprehensive asset management firm Carlyle Group manages a total of $385 billion in assets. As the world's number one manager of collateralized loan obligations (CLOs), Carlyle holds strengths in the credit sector, which Korea Investment & Securities has recently been focusing on investing in and supplying.

Earlier, Korea Investment & Securities partnered with Carlyle last month to launch the "Korea Investment Carlyle CLO General Private Investment Trust" with a limit of 50 billion KRW. This product invests in CLOs traded in the global financial market. Korea Investment Management handles domestic management, while Carlyle is responsible for overseas delegated management such as CLO portfolio and trading. The fund incorporates CLOs of BB and BBB tranches approved by Carlyle’s investment committee and includes CLOs with a high likelihood of early redemption before the fund’s maturity to facilitate investment recovery.

This is significant as it opens a path for domestic individual investors, who previously had difficulty accessing global investment products, to invest. Korea Investment & Securities plans to establish a global product development process capable of stably supplying more than 50 trillion KRW worth of products annually to provide customers with stable and diverse investment opportunities. The goal is to increase the proportion of overseas products in individual assets to 30% by 2030.

President Jung Il-moon stated, "By leveraging Carlyle’s network, we expect to build a pipeline for retail productization and expand overseas IB deal sourcing channels, thereby enhancing our competitiveness in overseas markets and our own capabilities." He added, "We will explore more opportunities in the global market to increase customers’ assets and returns through various products."

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