South Korea’s largest asset management Samsung Asset Management Co. vowed to up its investment in alternative assets to 10 trillion won ($8.8 billion), about three times more than its current alternative investment, over the next four years by focusing on the fast-expanding infrastructure market
Upon unveiling the plan, Koo Sung-hoon, Samsung Asset Management’s chief executive, on Wednesday said alternative investment is a must, citing the high growth potential in infrastructure market. The firm currently manages 3 trillion won in its alternative investment portfolio and wants to more than triple that to 10 trillion won. The company currently manages nearly 210 billion won in assets.
The company has been seeking new investment opportunities in alternative assets like power plants, aircrafts, and renewable energy projects while considering investment in diverse assets through partnership with global investors, said Koo.
Samsung Asset Management already has taken its first step to boost its alternative investment. The Korean asset manager in hands with Australia-based global institutional investment manager IFM Investors Pty Ltd created a private equity fund worth 500 billion won to invest in infrastructure projects. Samsung will lead the overall asset management and IFM Investors will handle overseas sales.
IFM Investors is Australia’s largest pension fund manager and also the one of the world’s top three investors that heavily invests in infrastructures ranging from airports to water treatment plants across the world. Its assets under management amounts $58 billion in total.
By Kim Hyo-hye
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