Global alternative investment firm The Carlyle Group has joined hands with South Korea’s Shinhan Alternative Investment Management (SAIM) to launch a $600-million infrastructure fund, according to several Korean media reports.
The vehicle, Shinhan-Carlyle Infra Credit 1, has already made investments in prime infrastructure loan products in Europe and the US, according to the reports. The fund is expected to garner annual returns of 6 to 8 per cent in Korean won terms.
Emails sent to Carlyle and SAIM had not elicited a response at the time of publishing this article.
The fund was customised to meet the demand from Korean insurance companies for high-yielding investments ahead of mark-to-market accounting in 2023 that would raise their burden of capital costs, Koreaninvestors.com said.
Meanwhile, Pulse News quoted Philip Lee, a director at SAIM, as saying that the structure of Shinhan-Carlyle Infra Credit 1 “has made it possible for a global GP to raise large-scale capital in the Korean market for its first-time fund without an institutional track record.”
SAIM managed 6.5 trillion won ($5.4 billion) of assets across 28 funds as of July 2019, per information available on its website. The firm invests in real estate, infrastructure, private equity and corporate credit.
The launch of the new joint fund reportedly comes on the heel of SAIM and Carlyle’s first joint attempt earlier this year to raise $330 million for the latter’s revolving loan fund targeting Korean insurance companies.
The US-headquartered asset manager’s credit business had earlier secured a $51 million financing from South Korea’s STIC Alternative Asset Management. Carlyle Asia Partners V, the PE firm’s latest Asia fund, recently invested $200 million in KB Financial’s bonds.
Earlier this year, SAIM also raised a $200-million fund with KKR & Co, with $150 million set aside for private equity and $50 million for real estate and infrastructure investments.