[Asia Economy Reporter Dongwoo Lee] It has been reported that the redemption of a private equity fund invested in by a securities company has been postponed. Securities companies are no longer free from damages caused by the suspension of private equity fund redemptions.
According to the financial investment industry on the 26th, Kiwoom Securities confirmed that it received a notice of redemption postponement from the asset management company Gentu Partners on the fund's maturity date. It is known that the management company notified the postponement of redemption, citing a delay in calculating the net asset value (NAV) of the fund subscribed to by Kiwoom Securities.
An industry insider said, "Among all the funds managed by Gentu Partners, some have leverage and are entangled in various (issues), so it seems difficult to calculate the NAV for this fund first."
However, he emphasized, "This fund has no leverage and invests in stable assets, so payment will be made once the NAV calculation becomes possible," adding, "There is no investor damage related to this incident."
Previously, Kiwoom Securities issued derivative-linked securities (DLS) related to the Gentu Partners fund and sold them to investors, but the company explained that the DLS product has already matured and repayments were conducted normally.
Gentu Partners is a Hong Kong-based hedge fund that mainly manages funds investing in high-quality bonds such as overseas financial bonds. While the investment assets are stable, it has mainly used a method of leveraging investor funds to increase returns.
Recently, due to the COVID-19 pandemic, bond prices plummeted, causing losses in the fund. In this process, problems such as the failure of early redemption of DLS related to the Gentu Partners fund sold by Shinhan Investment Corp. continued.
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