KIC explores Europe middle-market private equity opportunities

The Korea Investment Corporation (KIC) on Monday explored investment opportunities in Europe’s middle-market private equity sector with other South Korean institutional investors and London-based asset managers at its 30th London International Financial Cooperation Council.

The gathering brought together about 30 participants, including officials from Korean securities firms, banks and insurance companies.

Xavier Robert, chief investment officer at Bridgepoint, delivered a keynote presentation. He highlighted the undervaluation of European companies relative to their US peers and noted their lower leverage levels as an attractive investment factor.

The mid-market segment in the European private equity market is less reliant on initial public offerings for investor exit strategies. This makes it relatively resilient in an environment where heightened market volatility makes it harder to divest of assets, he said.

Robert added that Europe surpassed the US in private equity deal count last year, although it lagged in transaction value. This suggests that in the middle market private equity segment, European companies present more investment opportunities than in the US.

Bridgepoint, a London-based alternative investment firm, was established in 1984 as a private equity arm of National Westminster Bank (NatWest). It went public on the London Stock Exchange in 2021.

The firm manages approximately €67 billion ($70 billion) across private equity, private debt and infrastructure investments.

Lee Geon-woong, head of KIC’s London office, said the gathering offered a valuable opportunity to assess key issues on the European private equity landscape and discuss future investment directions.

KIC, South Korea’s sovereign wealth fund, operates overseas offices in New York, San Francisco, London, Singapore and Mumbai.

Write to Gyeong-Jin Min at min@hankyung.com
 


Yeonhee Kim edited this article.