Hyundai Alternative Surpasses 380 Billion Won in Assets Under Management Just 7 Months After Launch: "Stable Market Entry"

AUM Surpasses 380 Billion Won Just Seven Months After Launch in May
"Twice the First-Year Performance of Top Industry Players"

Hyundai Alternative, the alternative investment asset management arm of Hyundai Motor Group, has drawn significant attention in the market by surpassing the first-year performance of top-tier companies in the industry just seven months after its launch.

Hyundai Alternative Headquarters in Yeouido, Seoul. Hyundai Alternative

According to Hyundai Alternative on January 23, the company’s total assets under management (AUM), including committed capital as of the end of last month, exceeded 380 billion won. This figure is far higher than the industry’s first-year average committed capital of 150 billion won for leading alternative investment managers, and is approaching the average for second-year firms.

In particular, within just seven months of its launch, Hyundai Alternative has rapidly expanded its portfolio by establishing funds across all areas of alternative investment, including real estate equity investment, private debt funds (PDF), and non-performing loans (NPL).

Hyundai Alternative has currently established a total of eight funds, including real estate equity investments. Considering that newly established asset management firms with short track records typically face difficulties in attracting investors and especially in seizing large-scale real estate investment opportunities, this result defies industry expectations.

In fact, in November of last year, Hyundai Alternative successfully established a 203.9 billion won fund by acquiring a newly constructed building in the Gangnam Business District (GBD) of Seoul. The company has built a unique track record by securing high-quality assets amid competition with large asset management firms.

Industry experts believe that the company’s specialized talent pool and the strong capital base of its parent companies, Hyundai Card and Hyundai Commercial, have been the driving forces behind these achievements.

According to Hyundai Alternative’s third-quarter business report, 13 out of its total 20 employees (65%), including CEO Lee Yongkyu, are investment management professionals. CEO Lee is an investment expert who previously served as Executive Director of the Capital Markets Division at Mastern Asset Management.

Another strength is the ability to secure mid- to long-term growth engines through synergy with its parent companies. Last month, Hyundai Card and Hyundai Commercial invested 15 billion won and 25 billion won, respectively, in a private debt fund established by Hyundai Alternative. As it is common in the financial sector for affiliates to participate as strategic investors (SI), there is a high possibility of continued collaboration in future investment projects.

This collaborative structure is beneficial for all three companies. Hyundai Alternative gains the momentum to secure high-quality assets based on stable capital, while Hyundai Card and Hyundai Commercial can diversify their sources of income through alternative investments.

A Hyundai Alternative representative stated, "Through thorough market analysis and the organization of professional talent, we have been able to achieve meaningful results across all areas of our business," adding, "We will continue to identify high-quality investment opportunities throughout the alternative investment sector and strengthen market trust."