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Shinhan Financial Group and KKR Raise Alternative Investment Fund
A Tailor-made Fund for Shinhan
Shinhan Financial Group and KKR Raise Alternative Investment Fund
  • By Yoon Young-sil
  • January 10, 2020, 09:29
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Shinhan Financial Group chairman Cho Yong-byung (right) and KKR co-president Joseph Bae pose for a photo after signing a memorandum of understanding in September 2018.

Shinhan Financial Group and Kohlberg Kravis Roberts (KKR) raised a fund of US$200 million for better global alternative investment. Established in 1976, KKR managed various assets worth a total of US$194.7 billion as of December 2018 and is currently running 21 offices in 16 countries located in four continents.

KKR and Shinhan Financial Group signed a memorandum of understanding for global alternative investment partnership in September 2018. The newly raised and tailor-made fund is to make investments in KKR’s various products in accordance with the common asset allocation strategy of the two companies.

The fund allows their consultation in each fund management step such as asset allocation and investment decision making. Shinhan Financial Group is expected to take part in every investment decision making step of KKR and this is expected to result in a direct transfer of KKR’s global investment experience and capabilities.

The first portfolio of the fund is the private equity fund sector. The group launched a fund of US$150 million via Shinhan Alternative Investment Management and Shinhan Bank, Shinhan Investment, Shinhan Securities and Orange Life participate in the fund. The second portfolio is real estate and infrastructure for stable investment profits. A US$50 million fund is going to be raised soon.