Home Alternative Investments S.Korean investors name their 42 favorite alternative asset managers

S.Korean investors name their 42 favorite alternative asset managers

18
0

Apollo Asset Management, Warburg Pincus and Lexington Partners are South Korean institutional investors’ most preferred private equity firms, according to a survey. Ares Management and Golub Capital are the Korean limited partners’ favorite private debt managers, the survey showed.

Blackstone was named as the best real estate manager, and Macquarie Asset Management was picked as the most preferred general partner (GP) for infrastructure investment. Including the top alternative asset managers, a total of 42 alternative asset managers were named for the award this year.

To see the list of Best Asset Managers by Korean Investors, click on the logo below.

SELECTION STANDARDS

The surveyed LPs chose their best GPs across five asset classes: private equity, private debt, real estate, infrastructure and absolute return strategy in terms of performance, operation and client services. To prevent big-name houses from dominating the list, the award winners were separated into large-cap and mid-cap firms.

The subcategory awards focus on specific criteria. The Best Performance was awarded to outperforming managers in risk-adjusted returns. The Operational Excellence was given to those who outstand in risk management, communication and key person employment. The Best Client Service prize was awarded to the GPs which provided great services tailored to LPs’ needs.

The Best of the Best winners are the firms that received the most votes across the subcategory in each asset class.

PRIVATE EQUITY

Large-cap Mid-cap Fund of Funds
Best of the Best Apollo Asset Management Warburg Pincus Lexington Partners
Best Performance Clayton, Dubilier & Rice (CD&R) N/A HarbourVest Partners
Operational Excellence KKR & Co. N/A N/A
Best Client Service Permira Nordic Capital
Summit Partners
Hamilton Lane
Adams Street Partners
Stepstone Group

Among large-cap private equity managers, Apollo Asset Management was chosen as the Korean LPs’ most preferred GP. With $631 billion in assets under management as of end-September 2023, it invests across equity, credit and real assets across the globe. Last June, Korea’s Government Employees Pension Service (GEPS) tapped Apollo, alongside EQT Partners and Warburg Pincus, as its first global buyout and growth capital managers. 

Clayton, Dubilier & Rice (CD&R) was named for the Best Performance award. Founded in 1978, it is a leading private asset manager investing in a broad range of industries, including industrial, healthcare, consumer, technology and financial services end markets. The firm has offices in New York and London.

KKR & Co. was picked for the Operational Excellence award for the second straight year. The private equity giant, managing $528.8 billion in assets as of end-September of 2023, promoted Keith Kim at its Seoul office to a partner last December. KKR is proceeding with a sale of Ecorbit Co., a joint venture between the private equity firm and Korean mid-sized conglomerate Taeyoung Group.

The Best Client Service prize was given to Permira. Founded in 1985, its buyout, growth equity and credit funds have total committed capital of €78 billion. Operating 15 offices in Europe, the US and Asia, the firm invests in a broad range of sectors such as tech, consumer, healthcare and services.

Warburg Pincus was appointed as the Best of the Best winner. Founded in 1966, it has invested more than $113 billion in over 1,000 companies across private equity, real estate and capital solutions strategies. Its AUM is more than $83 billion as of end-2023. The firm and Seoul-based real estate developer MQ Group said last year they will set up a JV to invest seed capital in warehouses in Korea

Nordic Capital and Summit Partners won the Best Client Service prize as mid-cap private equity firms. Both investment managers were named as an award winner for the first time.

Founded in 1989, Sweden-based Nordic Capital is a leading private equity investor in healthcare, tech & payments, consumer, financial services industrial and business services in Europe and the US. The firm has invested €23 billion in 140 investments and operates offices across Europe, the US and Korea.

Summit Partners has specialized in growth equity, fixed income and public equity since its inception in 1984. The US private investment firm has invested in more than 550 companies worldwide in tech, healthcare, life sciences and other growth industries and operates offices in North America and Europe.

Among fund of funds (FoF) managers, Lexington Partners was appointed as the Best of the Best award winner. As a secondary private equity and co-investment specialist manager of Franklin Templeton, Lexington has a total capital of more than $75 billion and has acquired over 5,000 interests. The firm won the Best Performance award in early 2021.

HarbourVest Partners was chosen as the winner of Best Performance FoF manager. Based in Boston, the US, the firm manages more than $117 billion in private equity, co-investments, private credit, infrastructure and real assets. HarbourVest was named the Best of the Best FoF manager last year, Best Performance FoF manager in early 2022 and the most preferred large-cap private equity firm in early 2021. 

The Best Client Service award for FoF managers was given to Hamilton Lane, Adams Street Partners and Stepstone Group.

Hamilton Lane is one of the world’s largest private markets investment firms. The Nasdaq-listed firm has $854.2 billion in assets under management and supervision as of end-September 2023 and invests in a full spectrum of strategies such as direct credit, direct equity, primaries, secondaries, real assets and venture capital across North America, Europe, Asia Pacific and the Middle East. The firm was picked as the Best of the Best FoF manager for three years from early 2020. 

Adams Street Partners manages $58 billion in assets for more than 560 institutional investors including corporates, public pensions and family offices, focusing on co-investments, growth equity, private credit, primary investment and secondaries as core strategies. The firm won the Operational Excellence prize last year.

StepStone Group is a Nasdaq-listed global private markets firm that oversees $659 billion of capital allocations, including $146 billion of AUM as of end-September, 2023. In 2022, the firm approved more than $80 billion across fund investments, secondary investments and co-investments on behalf of global investors. It won the Best Client Services prize as an FoF manager in early 2023 and 2022 and was named for Best Performance private equity manager in early 2021.

PRIVATE DEBT

Large-cap Mid-cap
Best of the Best Ares Management Golub Capital
Best Performance H.I.G. Capital Alcentra Capital
Operational Excellence N/A Park Square Capital
Best Client Service N/A Crescent Capital Group

Ares Management, listed on the New York Stock Exchange, was nominated for the Best of the Best award as a private debt manager. It offers primary and secondary investment solutions across credit, private equity, real estate and infrastructure. Its global platform had $395 billion of AUM as of end-September, 2023. The firm won the same distinction for four straight years.

H.I.G. Capital was chosen for the Best Performance. The H.I.G. family of funds includes private equity, growth equity, real estate, direct lending, infrastructure, special situations debt, and biohealth across the US, Europe and Latin America. Since 1993, it has invested in more than 400 companies with a combined revenue in more than $52 billion. The firm won the Best of the Best prize last year.

There were no winners of Operational Excellence and Best Client Service among large-cap private debt managers this year.

Among mid-cap debt investors, Golub Capital was appointed as the Best of the Best winner. With more than $65 billion AUM, Golub is a market-leading direct lender and credit asset manager. The firm’s sponsor finance expertise forms the foundation of its Broadly Syndicated Loan and Credit Opportunities investment programs. It won the Operational Excellence award in early 2023 and the Best Performance prize in early 2021.

The Best Performance prize for mid-cap debt investors was awarded to Alcentra Capital. Founded in 2002, the firm is one of the largest European-headquartered credit and private debt managers, with $35 billion of AUM and global expertise in senior secured loans, high-yield bonds, private credit, structured credit, special situations and multi-strategy credit. It is a wholly-owned subsidiary of Franklin Resources.

The Operational Excellence award was given to Park Square Capital, Europe’s private credit investor which manages $15 billion of capital. It provides mid-market direct loans, large-sized senior debt and junior capital solutions to high-quality and stable companies across Europe and the US. The firm won the Best Client Services award last year.   

Crescent Capital Group was nominated for the mid-cap debt investor for Best Client Service. With $40 billion of AUM as of end-2023, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. The firm is a part of SLC Management within Sun Life.

REAL ESTATE

Large-cap Mid-cap
Best of the Best Blackstone  N/A
Best Performance CBRE Investment Management Starwood Capital Group
Bridge Investment Group
Operational Excellence UBS Asset Management
LaSalle Investment Management
Affinius Capital
Best Client Service Principal Asset Management
(Principal Real Estate)
Nuveen Real Estate
CIM Group

Among large-cap managers in real estate, Blackstone was named for the Best of the Best. It is the world’s largest alternative asset manager with $1 trillion in AUM. The firm oversees around 12,500 real estate assets and more than 230 portfolio companies as of end-2023. Its business spans private equity, real assets, hedge funds, credit, secondaries, insurance solutions and life sciences. Blackstone was picked for the Best of the Best award last year, Operational Excellence winner in early 2022 and Best Performance in early 2021.

CBRE Investment Management won the Best Performance award. It manages around $144.2 billion in assets as of end-September, 2023, operating in more than 30 offices and 20 countries. The company is an independently operated affiliate of the New York Stock Exchange-listed CBRE Group, the world’s largest commercial real estate services and investment firm. The affiliate won the Best of the Best last year and Best Communication in early 2021.

UBS Asset Management and LaSalle Investment Management jointly received Operational Excellence as large-cap real estate investors.

UBS Asset Management is a global large-scale and diversified asset manager, with a presence in 23 markets. It offers investment capabilities across all major traditional and alternative asset classes, from active to passive including a comprehensive sustainable investing offering. Invested assets for the UBS Asset Management business from UBS Group totaled $1.56 trillion as of end-September, 2023.

LaSalle Investment Management is a unit of Jones Lang LaSalle, one of the world’s largest real estate companies. With $89 billion in AUM, the firm invests in private equity, private debt and public real estate securities through separate accounts, commingled funds and indirect investments that include multi-manager, joint ventures and co-investment structures targeting large-scale transactions. The firm won Operational Excellence last year.

The Best Client Service prize was awarded to Principal Asset Management (Principal Real Estate) and Nuveen Real Estate.

As a global leading real estate manager with $98.8 billion of AUM as of end-2023, Principal Real Estate provides a wide range of financial services for real estate, with capabilities that span private equity, private debt, global real estate investment trusts (REITs) and commercial mortgage-backed securities (CMBS).

Nuveen Real Estate, a unit of US teachers retirement fund TIAA, is one of the largest investment managers in the world with $149 billion of AUM as of end-September, 2023. It manages a suite of funds and mandates across both public and private investments, and spanning both debt and equity across diverse geographies, it provides access to every aspect of real estate investing.

There was no Best of the Best winner among mid-cap real estate investment firms this year.

For the Best Performance prize, Starwood Capital Group and Bridge Investment Group were jointly nominated.

Starwood Capital Group, with $115 billion in AUM, has invested in more than $240 billion of assets focusing on a diverse range of properties including hotels, residential, office, retail and industrial assets since its inception in 1991. The Miami-headquartered firm won the Best Performance award in early 2022, and its unit Starwood Energy received the Best Client Service prize in early 2021.

Bridge Investment Group is a leading alternative investment manager, diversified across real estate, credit, renewable energy and secondaries. Headquartered in Salt Lake City, Utah, the firm manages $49.4 billion in assets across the globe as of end-September, 2023. It won the Best Client Service in 2022 and 2023.

The Operational Excellence award was given to Affinius Capital, formerly known as USAA Real Estate and Square Mile Capital Management. Its investment professionals in 10 global offices oversee $32 billion in net AUM as of end-September, 2023 that comprise diversified portfolios across North America and Europe. The firm won Best Performance last year.

CIM Group was appointed as the Best Client Services provider among mid-cap real estate investors. The firm is a community-focused real estate and infrastructure owner, operator, lender and developer. Since 1994, CIM has sought to create value in projects and improve people’s lives across the Americas. It owns and operates assets reaching $30.7 billion as of end-September, 2023.

INFRASTRUCTURE

Large-cap Mid-cap
Best of the Best Macquarie Asset Management N/A
Best Performance Brookfield Asset Management
Antin Infrastructure Partners
Vauban Infrastructure Partners
Operational Excellence EQT Partners DIF Capital Partners
Best Client Service BlackRock
Ardian
Stafford Capital Partners

Macquarie Asset Management was named the Best of the Best among large-cap infrastructure investment firms. It manages $573 billion in assets as of end-September, 2023, providing a diverse range of investment solutions including real assets, real estate, credit, equities and multi-asset. The Macquarie Group unit was named for Best Performance last year and for the Best of the Best in early 2021 and 2022.

The Best Performance award was given to Brookfield Asset Management and Antin Infrastructure Partners.

Brookfield Asset Management, a Canadian firm with over 100-year heritage as a global investor and operator, manages $850 billion in assets across renewable power and energy transition, infrastructure, private equity, real estate, credit and insurance solutions. It won the Best of the Best last year and in early 2021, and Best Performance in early 2022.

Antin Infrastructure Partners was named for the Best Performance. With more than €30 billion in AUM, the firm targets energy and environment, digital, transport and social infrastructure sectors. With a presence in Paris, London, New York, Singapore, Seoul and Luxembourg, Antin employs over 220 professionals. Antin won the Best Performance in early 2022 and the Best Client Service in early 2021.

EQT Partners, under the umbrella of the Wallenberg family, was nominated as the Operational Excellence winner. The Swedish firm manages €232 billion in total AUM within two business segments – private capital and real assets. EQT won the Best Performance last year and the Best Client Service in early 2022 as a private equity manager.

The Best Client Service prize was awarded to BlackRock and Ardian.

BlackRock has a global presence in 36 regions around the world, managing total operating assets of $10 trillion as of end-September, 2023. Its Alternative Investment Platform, worth $276 billion, is designed to deliver outstanding results across a range of investments in real estate, infrastructure, private equity, credit, hedge funds and alternative solutions.

Ardian is a leading private investment company with assets of $160 billion managed or advised globally. With a global presence in 19 offices worldwide, it invests in infrastructure, fund of funds, private debt, direct funds including expansion, mid-cap buyout, growth, co-investment and real estate. The firm won the Best Client Service as a private equity manager and the Operational Excellence as an infrastructure investor last year and received the Best Client Service as a private equity firm in early 2021.

There wasn’t the Best of the Best winner among mid-cap infrastructure investment firms this year.

Vauban Infrastructure Partners was selected as the Best Performance winner. The Paris-headquartered firm targets predominantly European brownfield mid-market assets pursuing a long-term yield-driven strategy. As an affiliate of Natixis Investment Managers, it has raised €8 billion and has invested in over 70 assets in mobility, energy transition, social & digital infrastructure. It won the Best of the Best prize last year.

DIF Capital Partners was chosen as the Operational Excellence winner. With €16 billion of AUM, the Dutch firm focuses on mid-market investments, primarily in Europe, North America and Australia. It follows two strategies: its DIF funds invest in lower-risk mid-sized projects and firms in the energy transition, utilities, public-private partnerships and concessions. The CIF funds invest in small to mid-sized companies that will thrive in the new economy.

Stafford Capital Partners was selected for the Best Client Service. The UK firm’s operational scale is $8.3 billion, with its main strategies being infrastructure secondaries, timberland secondaries, carbon funds, private equity and private credit strategies. About 80 employees work in London, Zurich, Sydney, Austin and Seoul.

ABSOLUTE RETURN STRATEGIES (HEDGE FUND & MULTI-ASSET)

Large-cap Mid-cap
Best of the Best N/A N/A
Best Performance Citadel Man Group
Operational Excellence N/A SPF Investment Management
Best Client Service GoldenTree Asset Management Orchard Global Asset Management

Citadel won the Best Performance award as a hedge fund manager. As one of the most profitable hedge fund investors, it deploys capital across five core strategies – equities, fixed income and macro, credit and convertibles, commodities and quantitative strategies. Citadel’s AUM is $56 billion as of end-2023. The Miami-headquartered firm won the same distinction last year and received the Best of the Best in early 2021.

GoldenTree Asset Management was selected for the Best Client Service. The firm focuses on credit management in sectors such as high yield bonds, leveraged loans, private credit, distressed debt, structured products, emerging markets, private equity and credit-themed equities. GoldenTree manages over $53 billion in assets. It won the Best Client Service in early 2022 and early 2021.

Man Group was nominated for the Best Performance award. The London Stock Exchange-listed firm is one of the largest hedge fund investors managing $161.2 billion in assets as of end-September, 2023. Its quantitative expertise and data-driven culture leads the firm to a unique position to uncover future opportunities. Man Group was chosen as the Best Client Service winner last year and the Best Communication winner in early 2021.

SPF Investment Management was named for the Operational Excellence winner. The firm seeks to opportunistically allocate capital across the global securitized credit market, which includes non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), asset backed securities (ABS) and collateralized loan obligations (CLOs). It manages around $2.5 billion in assets as of end-2023.

Orchard Global Asset Management was selected for the Best Client Service. The alternative investment firm provides transformational financing solutions to banks and asset managers seeking capital solutions. It offers solutions through regulatory capital, opportunistic lending, CLOs and public credit trading.

The 15 surveyed limited partners are as follows:

Public pensions and SWF

National Pension Service
Korea Investment Corporation
Government Employees Pension Service
Teachers’ Pension
Korea Post (savings)

Mutual aid associations

Military Mutual Aid Association
Korean Federation of Community Credit Cooperatives
The Korean Teachers’ Credit Union

Insurers

Kyobo Life Insurance
Samsung Life Insurance
Samsung Fire & Marine Insurance
Shinhan Life Insurance
Hanwha Life
ABL Life Insurance
KB Insurance

Write to Jihyun Kim at snowy@hankyung.com
Jennifer Nicholson-Breen edited this article.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here