"Slower Private Equity Exits... Secondary Market Expected to Expand"

Korea Investment Corporation Hosts Forum on M&A Market Trends in New York

"Growing Demand for Liquidity as Exits Slow Down"

Korea Investment Corporation (KIC) hosted an event in New York, inviting Korean financial professionals and local investment experts to discuss this year's M&A market trends and private equity secondary strategies.

26th New York Financial Professionals Forum held in New York, USA. Korea Investment Corporation

On the 27th, Korea Investment Corporation announced that its New York branch held the 26th New York Korean Finance Forum at The Korea Society in New York on the 26th (local time).

The forum was attended by more than 30 participants, including the Deputy Consul General of the Consulate General of the Republic of Korea in New York, as well as representatives from government, public investment institutions, and investment managers from securities firms, banks, and insurance companies.

Victor Wu, Co-Chair of the Secondary Investment Committee at Lexington Partners, who led the presentation, pointed out that demand for secondary transactions is increasing as exits from private equity investments slow down.

He stated, "The U.S. M&A market has recently shown signs of recovery, but as the holding period for portfolio companies lengthens, investors' need to secure liquidity is growing," adding, "Secondary sales transactions, which help generate liquidity and optimize portfolios, are expected to become even more active going forward."

Secondary transactions refer to deals in which an existing investor (Limited Partner) sells their private equity stake. The seller can secure liquidity by recouping their investment early, while the buyer gains the advantage of investing in assets that are relatively close to exit.

Lexington Partners is a subsidiary of U.S. financial company Franklin Templeton and has specialized in secondary investment strategies for over 30 years since its founding in 1990.

Kim Yulyoung, Head of KIC’s New York branch and organizer of the event, said, "It was a great opportunity to gain in-depth insights into the current active secondary market and future effective strategies," and added, "We will continue to provide a platform for dialogue to support portfolio diversification for Korean institutional investors."

Meanwhile, the sovereign wealth fund Korea Investment Corporation operates overseas branches and offices in major global financial centers, including New York and San Francisco in the United States, London in the United Kingdom, Singapore, and Mumbai in India.

This content was produced with the assistance of AI translation services.