South Korean investment firm Samsung Asset Management announced Wednesday that it would build a $480 million worth private equity designed to fund infrastructure, by teaming up with the Australian investment company IFM Investors.
The fund is slated to be earmarked by four Korean institutional investors, but a target for injection has yet to be chosen, according to the deal sealed in Seoul on Wednesday.
(Samsung Asset Management)
The Seoul-based investment arm under the nation’s largest conglomerate will manage the fund at large, while the Melbourne-based company will be entrusted with overseas management, Samsung Asset Management said in a statement.
The private equity fund aims to invest in infrastructure assets in nations in North America and Europe with A- credit ratings or above. Projects on new and renewable energy, utilities, or the midstream sector in the oil and gas industry, as well as projects under public private partnership are likely to be major targets.
Koo Sung-hoon, president of Samsung Asset Management, stressed the need to address “growing demand for investments in infrastructure assets” in the wake of tightening environment regulations in developed countries and a wave of rapid urbanization in developing nations.
IFM Investors has put some $58 billion worth of assets under its management. The manager ranked No. 5 in the biggest infrastructure investors tally in 2016 by a publication owned by Private Equity International, Infrastructure Investor.
By Son Ji-hyoung (email@example.com