Yellow Umbrella allocates $518mn to alternative assets A Korean mutual aid fund is likely to focus on private debt and acquisition financing
Translated by Ryu Ho-joung 공개 2020-01-17 08:00:00
이 기사는 2020년 01월 17일 08:00 thebell 에 표출된 기사입니다.
Yellow Umbrella, South Korea's mutual aid association for small and mid-sized business owners under Korea Federation of Small and Medium-sized Businesses (KBIZ), is expected to take an investment approach similar to last year’s moves.Yellow Umbrella, with more than 11 trillion won ($10 billion) in total assets, plans to invest about 600 billion won ($518 million) in alternative assets in 2020, industry sources said on Monday. This is similar to last year’s figure.
Yellow Umbrella is expected to maintain its existing investment strategies, focusing on stability rather than high returns. “Yellow Umbrella is considered one of the most conservative investors among domestic institutions,” said an industry insider. “Given the nature of the institution, its investment stance is unlikely to change in the short term.”
Private debt is likely to be one of the major asset classes where Yellow Umbrella will put focus in the global alternative markets as it did last year. The institution reportedly made about five investments in private debt funds managed by global asset managers, including BlackRock and Blackstone Group, in 2019. Those funds mainly invest in Europe. This year, Yellow Umbrella is likely to allocate more to private debt funds that lend to the U.S. firms.
In addition, real estate is expected to account for a large portion of the institution’s alternative investments. Yellow Umbrella made about four investments in global real estate funds in 2019, focusing on diversification and risk-adjusted returns. Yellow Umbrella limits each investment up to $50 million according to its risk management policy.
In the domestic alternative markets, Yellow Umbrella’s focus is expected to be placed on participating in acquisition financing, including investing in new deals as well as investment opportunities in connection with recapitalizations and refinancing of PE-backed companies. Last year, it participated in acquisition financing by subscribing for privately placed notes largely issued by highly-rated companies.
Yellow Umbrella is also likely to continue its effort to expand its investment reach, as it attempted to source deals in Australia and Japan last year.
“Yellow Umbrella’s overseas alternative investments have been passive due to a large dependence on a handful of global private equity firms,” said an industry insider. “New investment opportunities sourced by working-level staff seem to have hardly passed the investment committee. [Yellow Umbrella] should make more efforts to diversify its investment approach.”
(By reporter Kim Byung-yoon)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- (여자)아이들 '우기’, 초동 55만장 돌파 '하프밀리언셀러'
- [ICTK road to IPO]미국 국방산업 타깃, 사업 확장성 '눈길'
- [Red & Blue]'500% 무증' 스튜디오미르, IP 확보 '성장동력 발굴'
- [코스닥 주총 돋보기]피엔티, 이사회서 드러난 '중국 신사업 의지'
- [thebell note]XR 기술의 사회적 가치
- [Rating Watch]SK하이닉스 글로벌 신용도 상향, 엔비디아에 달렸다?
- [IB 풍향계]'소강상태' 회사채 시장, IB들 이슈어와 스킨십 늘린다
- [Company & IB]'반도체 IPO' 붐, 존재감 드러내는 삼성증권
- [캐피탈사 글로벌 모니터]BNK캐피탈, 중앙아시아 시장 지위 확보 역점
- '화웨이 대체자' 삼성전자, 유럽 오픈랜 시장 선점 속도