Korean LPs name their 36 favorite alternative asset managers

KKR was chosen as the best private equity firm by South Korean institutional investors, a survey shows. Blackstone, Macquarie Asset Management and Ares Management were picked as the best asset managers in real estate, infrastructure and private debt, respectively. US-based Millennium Management was selected as the best hedge fund manager by the surveyed limited partners. Hamilton Lane was chosen as the best private equity fund of funds (FoF) manager.

KED Global, a premium multilanguage business news provider, announced the winners of the Best Asset Managers by Korean Investors 2021 awards on Mar. 2. Korean Investors is an English media outlet delivering Korean LPs’ overseas alternative investment news, as well as being core content for KED Global.

The Korea Economic Daily, with global investment experts, has selected the award winners based on a survey for 26 Korea limited partners. The LPs include National Pension Service (NPS), Korea Investment Corporation (KIC), Korea Post and other pension funds, as well as mutual aids and insurers.   

Click on the logo below to redirect to the Best Asset Managers by Korean Investors page.

The respondents were asked to pick the best GPs across five asset classes: private equity; private debt; real estate; infrastructure; and hedge funds in terms of performance, operation, and client services. To prevent big-name houses from dominating the awards, GPs were separated into two categories: large-cap and mid-cap firms.

The subcategory awards focused on specific criteria. The Best Performance was awarded to outperforming managers in terms of risk-adjusted returns. The Operational Excellence award was given to outstanding GPs in areas of risk management, communication and key employee management. The Best Client Service award was given to GPs who best provided services tailored to each LP’s needs.

By asset class, GPs who received the most votes across the three subcategories were selected as the Best of the Best.

PRIVATE EQUITY

KKR was named as the Best of the Best among large-cap PE houses. The global alternative investment giant manages $459 billion in assets, including $211 billion of private equity. One of its latest funds is a $4 billion healthcare fund, which it closed in January. Last November, the company invested 2.4 trillion won ($2 billion) in SK E&S Co., Korean conglomerate SK Inc.’s liquefied natural gas (LNG) unit. Joseph Bae, a Korean American and former co-president of KKR, was promoted to the post of co-chief executive officer of the firm last October.

Carlyle won for Best Performance as a large-cap PE house. The global alternative investment giant manages $301 billion in assets, including $162 billion of private equity. Kewsong Lee, a Korean American, has been leading the group as CEO since 2018. The firm created a combined $51 billion in funds last year. In January, it acquired a 10% stake in logistics firm Hyundai Glovis Co.

Blackstone was awarded for Operational Excellence. The global investment firm is the world’s biggest private equity manager in terms of AUM, boasting $881 billion in assets including $261 billion of private equity. Michael Chae, a Korean American, is the firm’s chief financial officer. The firm plans to open its Seoul office this year.

EQT won the award for Best Client Service. Founded by Sweden's Wallenberg family, Europe's most prominent business dynasty with a 160-year industrial heritage, the company is the biggest PE firm in Europe managing €71.3 billion in assets. Focusing on rapid growth in the Asia-Pacific region, the firm received more than 2.7 trillion won ($2.3 billion) in commitment to its buyout and infrastructure funds from Korean LPs during the pandemic. In 2021, the firm hired two Korean investment managers to seek out investment opportunities in Asia's fourth-largest economy.

Permira won the Best Client Service award among mid-cap PE firms. The UK-based PE investment company manages €58 billion in assets, focusing on technology, consumer, healthcare and services.

Hamilton Lane topped the list of private equity FoF managers. The US firm offers a suite of investment solutions tailored to more than 800 institutional investors worldwide. Its AUM reaches $851.8 billion.

Among PE FoF managers, HarbourVest Partners was selected for Best Performance. Managing $86 billion in assets, the US firm has identified opportunities for early access to private equities since the 1980s. It provides clients with flexible private market investment services via FoF, secondary, co-investment and other solutions.

Pomona Capital was recognized for Operational Excellence among private equity FoF managers. The US investment firm specializes in secondary investing, focusing on North America.

StepStone Group received the Client Service award. The US-based FoF manager offers secondary, direct and co-investment solutions across private equity, infrastructure, private debt and real estate. Its AUM amounts to $127.8 billion.

PRIVATE DEBT

Ares Management won the Best of the Best award for two straight years from large-cap private debt managers. The US firm is a leading alternative credit manager with a $305.8 billion AUM, including $192.7 billion of credit. Its AUM increased 55% over the past year through fundraising and acquisitions of SSG Capital, Landmark Partners and Black Creek Group.   

Intermediate Capital Group (ICG) topped the Best Performance list, winning the distinction for two straight years. Managing $72 billion in assets, the UK alternative investment firm specializes in private debt.

UK-based CVC Capital Partners was recognized for Operational Excellence. The firm's credit arm invests in companies across sub-investment grade corporate credit markets in Europe and North America. CVC’s AUM reaches $122 billion including the credit platform’s $29 billion AUM.

Oaktree Capital Management was awarded Client Service. Co-founded by the world’s renowned investor Howard Marks, the firm manages $166 billion in assets. Specializing in distressed bond management, its clients include some largest pension plans and state retirement plans in the US, sovereign wealth funds and corporates worldwide. Canada-headquartered Brookfield Asset Management holds a 61.2% stake in Oaktree.

There was no Best of the Best mid-cap private debt manager this year.

Madison Capital Funding of New York Life Insurance was given the Best Performance among mid-cap PD managers. Madison offers financing solutions for leveraged buyouts (LBO) to middle-market US companies. Its AUM reaches $14 billion.

Angelo Gordon was named for Operational Excellence. The US alternative investment firm manages $51 billion across a broad range of credit and real estate strategies. In credit, the firm focuses on distressed and corporate special situation investing, middle-market direct lending, as well as structured credit.

RiverRock European Capital Partners was selected for the Best Client Service. The UK alternative investment boutique invests via direct lending, as well as offers European small and mid-sized enterprises various working capital solutions through trade finance and accounts receivable.



REAL ESTATE

Among large-cap real estate investment firms, Blackstone was picked as the most-preferred company, winning the Best of the Best. Its real estate assets amount to $279 billion, larger than its $261 billion of private equity. The firm uses a thematic approach through macroeconomic and demographic analysis for global real estate investment. One of its latest funds is a life science office real estate fund targeting more than $12 billion. NPS of Korea committed $500 million to the fund in early 2021. 

Starwood Capital Group won for Best Performance. Managing $115 billion in assets, the US firm closed its distressed opportunistic real estate fund at $10 billion last October.

MetLife Investment Management was selected for Operational Excellence. Under US insurance giant MetLife, the investment arm manages $99.1 billion in real estate assets.

Bridge Investment Group was named for the Best Client Service among large-cap real estate investment firms. The company adds value to multifamily properties in the US second-tier suburbs through renovations. The firm opened its Seoul office in October 2020, hiring Seunghwan Lee as the branch’s managing director, who formerly served as a deputy chief investment officer at sovereign wealth fund Korea Investment Corporation.

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

PCCP received the award for Best Performance as a mid-cap real estate investment firm. The US company was named Best of the Best last year. Managing $15.2 billion in assets, the company focuses on senior and mezzanine debts and value-add equity investment in small and mid-sized commercial real estate assets.

Madison Realty Capital was chosen for the Best Client Service among mid-cap real estate investment firms for two straight years. With $8 billion of AUM, the US firm focuses on debt investments by senior secured loans, mezzanine loans and preferred equity investment for construction, acquisition and refinancing of commercial real estate.



INFRASTRUCTURE

Among large-cap infrastructure investment firms, Macquarie was named as the Best of the Best. The Macquarie Group’s asset management arm has $531.7 billion of AUM, focusing on infrastructure and renewable energy. The firm manages Macquarie Korea Infrastructure Fund (MKIF), a Kospi-listed infrastructure fund in Korea that focuses on transportation assets in the country.

Brookfield Asset Management, with $690 billion of AUM, was chosen for Best Performance. Since 2013, the firm has received more than 50 trillion won in commitments from Korean LPs, including NPS. It named Jun Park, a top manager of Seoul-based private equity firm Hahn & Co., as the new head of its Korean operations last September. Brookfield is set to sell the International Finance Center (IFC) in Yeouido, Seoul's financial district, which it acquired with the IFC Mall and Conrad Seoul Hotel for 2.6 trillion won in 2016.

IFM Investors won the Operational Excellence among large-cap infrastructure asset managers. The Australia-based firm manages A$180 billion ($130 billion) in assets, including a $60.9 billion of infrastructure. The firm has 22 Australian superannuation funds as its shareholders.

AMP Capital was awarded for Best Client Service. The firm is under AMP Group, one of Australia's largest corporate pension providers that has a history of over 160 years. AMP Capital has invested in infrastructure since 1988 and manages A$190 billion ($136.5 billion) including A$25.9 billion ($18.7 billion) of infrastructure.     

Among mid-cap infrastructure asset managers, Schroders was selected as the Best of the Best. The firm has received €383 million commitments from Korean LPs via its Euro Enhanced Infrastructure Debt Fund II, which closed at €1 billion in July 2021. The fund focuses on mid-sized brownfield core infrastructure assets based in Europe.

The Best Performance winner among mid-cap infrastructure asset managers was Antin Infrastructure Partners. The private equity firm is specializing in infrastructure, managing €22 billion in assets. In January, the firm appointed Michelle (Min Kyung) Maeng, who worked for the placement agent team for private capital funds, as its new Investor Relations Director. 

Partners Group, managing $127 billion in assets, and InfraRed Capital Partners, with $10 billion of AUM, respectively, won the Operational Excellence and the Best Client Service among mid-cap infrastructure investment firms.



ABSOLUTE RETURN STRATEGIES (HEDGE FUND & MULTI-ASSET)

Among large-cap hedge fund managers, Millennium Management was selected as the Best of the Best. Co-founded by American billionaire Israel Englander in 1989, the firm manages $53.3 billion in assets. Michael Chung, a Korean American, is Deputy Global Head of Equities at the firm.

EnTrust Global, with $20 billion of AUM, was selected for Best Performance. The US manages funds of hedge funds, employing co-investment strategies in three asset classes -- credit & event-driven, equity long/short and global macro. Sophia Park Mullen, a Korean American, serves as a Senior Managing Director at the firm.  

Two Sigma and PanAgora Asset Management jointly won the Operational Excellence among large-cap hedge fund managers. New York-based Two Sigma uses machine learning and distributed computing for its quantitative investing. Boston-based PanAgora employs various multi-asset strategies, including risk parity, diversified factor premia and managed futures. 

GoldenTree Asset Management received the Best Client Service award two years in a row as a large-cap hedge fund manager. The firm invests in private debt, high-yield debt and non-performing loans.  

Systematica Investments, which employs trend-following strategies, won the Best Performance as a mid-cap hedge fund manager. Ellington Management Group, focusing on diversified credit, mortgage and fixed income, was selected for Best Client Service among mid-cap hedge fund managers.



Participants in this survey are as follows:

Public pensions and SWF

National Pension Service
Korea Investment Corporation
Korea Post - savings bureau
Korea Post - insurance bureau
Government Employees Pension Service
Teachers' Pension

Mutual Aids & Associations

Korean Federation of Community Credit
Korea Teachers' Credit Union
Public Officials Benefit Association
Yellow Umbrella Mutual Aid Fund
Korea Scientists & Engineers Mutual Aid
Military Mutual Aid Association

Insurance

Hanwha Life Insurance
Kyobo Life Insurance
Shinhan Life Insurance
Samsung Fire & Marine Insurance
NongHyup Life Insurance
DB Insurance
Hyundai Marine & Fire Insurance
KB Insurance
Mirae Asset Life Insurance
Meritz Fire & Marine Insurance
ABL Life Insurance
Prudential Life Insurance
Lotte Insurance
NongHyup Property & Casualty Insurance

Write to Chang Jae Yoo at yoocool@hankyung.com
Jihyun Kim edited this article.