Golub and Ares win $60 mn private debt mandates from Korea scientists fund
Sep 14, 2017 (Gmt+09:00)
Deutsche Bank's Korea IB head quits after country head resigns
Hanwha buys S’pore Dyna-Mac’s stake for $73.8 mn from Keppel
Macquarie Korea Asset Management confirms two nominees
Meritz leaves door open for an M&A, to stay shareholder friendly
Korea's Taeyoung to sell local hotel to speed up debt workout
Korea Scientists and Engineers Mutual-aid Association (SEMA) has decided to make its first allocation to global private debt funds by committing $30 million to each of Golub Capital and Ares Management, and is considering committing an additional capital to European private debt funds later this year, according to two local media reports.
SEMA, with 4.2 trillion won ($3.7 billion) in AUM, will deploy the capital to US-based credit asset manager Golub within the year and to Ares, the US alternative investment firm, early next year, Yonhap Infomax and Financial News reported on Sept. 13.
Both funds will finance private equity takeovers of US mid-market companies, as soaring private equity acquisitions and traditional banks’ retrenchment are increasing private debt demand.
With the new commitment from SEMA, Golub Capital is set to raise $70 million from South Korean investors for its new private debt fund which is expected to raise $2 billion. The Construction Workers Mutual Aid Association and Shinhan Investment Corp., a brokerage house, have recently decided to commit $20 million each to the fund.
Golub Capital’s new fund focuses on senior debt and is expected to deliver annual returns of 11 to 14%.
Ares primarily provides second-lien secured debt to fund acquisitions and targets 12 to 14% in annual returns for the debt fund.
Earlier this year, an insurance company source said that SEMA and two Korean insurance firms were strongly considering investing in a $2.5 billion private debt fund of Ares Management for making direct loans to mid to large-cap US companies.
By Daehun Kim
daepun@hankyung.com
Yeonhee Kim edited this article
-
Asset managementYoung rich Koreans set sights on M&A, commercial property deals
May 19, 2024 (Gmt+09:00)
-
Private debtM&A rebound will drive private credit volume increase: Golub Capital
May 16, 2024 (Gmt+09:00)
-
Investment bankingDeutsche Bank's Korea IB head quits after country head resigns
May 13, 2024 (Gmt+09:00)
-
Venture capitalVC firm DSC Investment forms Korea's largest secondary fund
May 09, 2024 (Gmt+09:00)