Igis Asset Management, the largest real estate asset manager in South Korea, has launched a secondary fund worth $100 million in an effort to widen its investment portfolio.
Igis has recently set up a private equity secondary commingled fund worth $100 million to invest in secondary blind funds managed by a global private equity firm. The name of the UK-based private equity firm was not disclosed. The $100 million investment deal also comes with secondary co-investment opportunities.
A private equity secondary investment refers to buying an existing limited partner interest or asset from of a private equity fund with discount. Through secondary investment, investors can benefit from a faster return of capital compared to a direct investment.
Along with the secondary blind fund, Igis has formed another investment vehicle to participate in a secondary co-investment and secondary commingled fund managed by the private equity firm worth $100 million.
It is the first time for Igis to set up a secondary blind fund, which is managed at its own discretion.
Amid a struggling commercial real estate market plagued by persistently high rates, the firm hopes to broaden its investment banking portfolio, expanding its presence in the secondary fund market. The firm's portfolio was focused on alternative investments, including real estate and infrastructure.
“The global private secondary fund market has grown at fast rate from $22 billion in 2010 to $120 billion in 2022. It is meaningful that Igis Asset Management has made into the secondary fund market,” an official from the firm said.
