Alpenroute Decides to Suspend Redemption of 110.8 Billion KRW Fund... "Decision for Customers"

[Asia Economy Reporter Ji-hwan Park] Alpenroot Asset Management officially announced on the 28th its policy to delay redemptions for funds totaling up to 180 billion KRW.

On the 28th, Alpenroot stated in an explanatory document that it has decided to delay redemptions for three funds: 'Alpenroot Atri Professional Investment-type Private Equity Trust No.1' (hereinafter A-type), 'Alpenroot Vitri Professional Investment-type Private Equity Trust No.1' (hereinafter Vitri), and 'Alpenroot Public Offering Stock Professional Investment-type Private Equity Trust No.2' (hereinafter Public Offering Stock).

The Atri fund, whose redemption request period has arrived, has an asset size of 56.7 billion KRW. Although the redemption periods have not yet arrived for the Vitri and Public Offering Stock funds, redemption requests have been made, with asset sizes of 49.3 billion KRW and 4.8 billion KRW respectively, totaling 110.8 billion KRW.

Alpenroot stated, "Assuming an extreme maximum value, there are 26 funds eligible for redemption delay until the end of February, with a total scale of 181.7 billion KRW," adding, "For the other open-ended funds besides these three, changes may occur depending on market conditions, so we have decided to take time to make a final decision on whether to delay redemptions." Alpenroot explained that delaying redemptions for a certain period is a better alternative for many clients in terms of preventing profit rate deterioration caused by forced sales or low-price sales.

Alpenroot emphasized, "This liquidity issue arose due to extreme risk aversion by securities firms amid the worsening private equity fund market situation, but contrary to concerns, most of the major funds with delayed redemptions hold high-quality portfolios," and added, "We are confident that over time these funds will stabilize and normalize without impairing returns."