Korea Investment & Securities and Stifel Financial form joint venture 

Korea Investment & Securities Co., a subsidiary of Korea Investment Holdings, announced on Wednesday that it has formed a joint venture with Missouri-based Stifel Financial Corp. 

The lending joint venture is dubbed SF Credit Partners. 

Concurrently the companies have entered into a strategic collaboration through which each firm will build on the other’s broad capabilities and regional market expertise. 

The strategic collaboration and the joint venture are subject to pending regulatory approvals. 

SF Credit Partners is slated to officially launch later this year and focus on acquisition financing and private equity loan business in the United States.

In particular, the joint venture will build on the two firms’ deal sourcing and product development capabilities, targeting the middle market.

The plan is to make the new venture a subsidiary of Korea Investment & Securities, with the latter investing $150 million over the next five years.

Under the strategic alliance agreement, the companies will explore new businesses and expand the exchange of goods and human resources.

“Seizing opportunities in the US market is a critical element of the long-term growth strategy of Korea Investment & Securities,” said Korea Investment Holdings Chairman and CEO Kim Nam-goo. “This significant investment of capital and talent will build on the 2021 opening of our New York offices, and our creation with Stifel of SF Credit Partners demonstrates our resolve to build a durable profit center in the United States.” 

Korea Investment & Securities CEO Jung Il-moon said: “Stifel is the optimal partner for the company’s entry into the US. There will be collaboration and exchange of human resources in a wide range of business areas such as research, sales, and asset management.”

“This joint venture anchors a broader strategic collaboration with Korea Investment & Securities, a unique relationship that will benefit each firm and our respective clients,” said Stifel CEO Ronald Kruszewski.

Founded in 1890, Stifel is an international full-service investment bank based in St. Louis, Missouri. It operates a fixed income platform, including distribution, research, and capital markets for leveraged loans and high yields.

In addition, Stifel is one of the largest equity underwriters and equity research providers in the US and acts as a leading mergers and acquisitions (M&A) advisor in both public and private transactions.

Stifel's asset size reached $34 billion last year.

Write to Hyeong-Gyo Seo at seogyo@hankyung.com
Jee Abbey Lee edited this article.