Shinhan Asset Management Launches Shinhan Private Corporate Loan Private Fund

On July 9, Shinhan Asset Management announced that it will launch the "Shinhan Private Corporate Loan General Private Mixed Asset Investment Trust No.1" (hereinafter referred to as the Shinhan Private Corporate Loan Private Fund), the industry's first fund to invest in the domestic private corporate loan market.

The Shinhan Private Corporate Loan Private Fund is a private fund that invests in direct loans and private bonds of domestic companies. It is designed to respond to the diverse borrowing needs of companies that traditional financial institutions such as banks and capital companies find difficult to meet, while providing institutional investors with a new opportunity to invest in the domestic private corporate loan market.

In particular, this product embodies Shinhan Asset Management's outstanding capabilities in managing loan funds. Since launching the "Shinhan Senior Loan Fund No.1" in 2014, Shinhan Asset Management has managed corporate loan funds for 12 years. Building on the successful establishment of its first fund, the company plans to further develop its private loan funds as a flagship alternative investment product.

The Shinhan Private Corporate Loan Private Fund primarily invests in loans and private bonds of companies with upper-middle credit ratings. Unlike existing acquisition finance funds or non-performing loan (NPL) funds, which target specific sectors, this fund differentiates itself by uncovering a wide range of private loan investment opportunities in leading domestic companies.

Additionally, the fund is expected to offer institutional investors—who have been unable to invest in this market due to the lack of dedicated internal teams for loan origination, assessment, and post-management—an opportunity to invest in a mid-interest loan portfolio.

Shinhan Financial Group has been seeking strategies to respond to changes in the capital market environment that are expected to reduce the role of traditional financial institutions in the corporate lending market, including the adoption of Web3 and decentralized finance (DeFi)-based payment systems as well as stricter regulations on risk-weighted assets (RWA). Within this changing landscape, Shinhan Asset Management aims to capture new investment opportunities in the corporate lending market and provide institutional investors with differentiated investment solutions through its private loan funds.

A representative from Shinhan Asset Management stated, "The Shinhan Private Corporate Loan Private Fund is a new corporate finance investment solution that connects the borrowing needs of domestic companies with the mid-interest investment needs of institutional investors. Based on the corporate loan fund management experience we have accumulated over 12 years, Shinhan Asset Management will continue to build a stable loan portfolio."

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