Kansas Asset Management Launches New Deal Infrastructure Fund Related to 300 Billion KRW BTL

[Asia Economy Reporter Minji Lee] Kansas Asset Management announced on the 23rd that it has newly established the ‘Kansas SH New Deal Infrastructure Specialized Private Investment Trust No.1 (hereinafter Kansas SH New Deal Infrastructure No.1),’ a fund that can invest in a 300 billion KRW scale BTL project (Build-Transfer-Lease project) together with four institutional investors including NongHyup Life Insurance and Heungkuk Life Insurance.

The ‘Kansas SH New Deal Infrastructure No.1’ is a fund investing in BTL projects, which constructs social infrastructure facilities such as university facilities (national university dormitories, etc.), educational facilities (Green Smart Schools, etc.), defense facilities (official residences, military barracks, etc.), and sewage pipeline facilities. Upon completion, ownership is transferred to the government or local governments, and investment costs are recovered over a long period through lease payments. This fund targets projects that can be promoted as BTL projects among the government’s ‘Digital New Deal (digital transformation of educational infrastructure, Green Smart Schools, establishment of start hospitals, etc.)’ and ‘Green New Deal (smart water and sewage systems, etc.)’ announced in February. With the establishment of the Kansas SH New Deal Infrastructure Fund No.1, Kansas Asset Management has laid the foundation to actively participate in the 2.3 trillion KRW scale BTL projects scheduled to be announced this year.

Kansas Asset Management, established in 2004 as an independent asset management company, expanded alternative investments by establishing the Infrastructure Management Headquarters in 2005. Currently, the Infrastructure Management Headquarters operates 55 infrastructure-related funds with a committed scale of 5.1 trillion KRW, among which there are 26 funds investing in BTL projects, starting with the ‘Kansas Infrastructure Private Special Asset Investment Trust No.1’ established in 2007.

Meanwhile, to meet market demand, Kansas Asset Management plans to continuously launch infrastructure-related funds that can participate not only in BTL projects but also in ESG investments such as renewable energy and traditional private investment projects, starting with Kansas SH New Deal Infrastructure No.1.