Hanwha Asset bolsters alternative investment push

Hanwha Asset Management, the investment arm of South Korea’s defense-to-energy conglomerate Hanwha Group, is ramping up its capabilities in alternative investments as part of its strategy to diversify its global portfolio.

The firm recently appointed private equity veteran James Kyu-hyun Kim as executive director. Kim is expected to spearhead new initiatives in the private equity sector, where firms generate returns by acquiring, managing and eventually selling stakes in private companies.

Hanwha Asset Management is reportedly planning to establish a new division under Kim’s leadership focused on private equity opportunities. The firm also plans to recruit additional experts to build out the business.

Kim holds a degree in business economics from Brown University and earned a master's in business administration from New York University. He previously worked at global private equity firm Affirma Capital. In 2021, he joined Morgan Stanley Private Equity Asia, where he was responsible for private equity operations in Korea.

In recent years, Hanwha Asset Management has expanded its presence in advanced financial markets by opening offices in San Francisco and New York.

As a result, its alternative investments have surged, with assets under management surpassing 22.6 trillion won ($16.6 billion) as of the end of May. In particular, the private equity and venture capital sectors have recorded an average annual growth rate of over 40 percent since the asset manager stepped into the sectors in 2016, with assets under management exceeding 8 trillion won.

Hanwha Asset Management CEO Kim Jong-ho has been striving to transform the company into a global asset manager, the firm explained. Kim took office in September.

According to the asset manager, Kim shared plans to expand the number of overseas representatives and recruit local financial investment experts to identify high-value-added business opportunities.

Hanwha Group has been gearing up to expand the global side of its financial business. Earlier this week, Hanwha Life, an insurer under the group, announced it has acquired a 40 percent equity stake in Indonesia’s Nobu Bank. The deal marks Hanwha’s first entry into the overseas banking sector.