KO

Popular Searches

Highlights Annual Report

Home      

Investments

Our Portfolio

Alternative Assets

Alternative Assets

KIC invests in alternative assets, including private equity, real estate, infrastructure,
hedge funds, and private debt.

Alternative assets refer to assets not traded in public markets, such as equities and fixed income. They are typically
characterized by longer investment horizons and lower liquidity compared to traditional assets. They also offer an
illiquidity premium and exhibit distinct risk-return characteristics, often resulting in low correlation with traditional
investments. As such, alternative assets serve as effective tools for reducing overall portfolio risk and diversifying
sources of return.

KIC began investing in alternative assets in 2009 with private equity and has since broadened its exposure to include
real estate, infrastructure, hedge funds and private debt. From the inception of its alternative investment program
through 2024, KIC has delivered a solid annualized return of 7.7% in this asset class.

  • In 2024, the global private equity market saw year-on-year growth in buyout investment activity as acquisition finance conditions improved, while the venture capital market saw the corporate value of related startups rise due to active investment in new technology companies such as AI. On the other hand, investment in areas with geopolitical risks was low, and the return on investment continued to be delayed as the IPO environment contracted.

    Accordingly, KIC intends to achieve solid long-term returns by building a diversified portfolio by region and strategy, focusing on high-quality assets that are economically defensive.

    In 2024, the global private equity market experienced a rebound in buyout activity compared to the previous year, driven by improved conditions for acquisition financing. In the venture capital space, active investment in emerging technologies such as artificial intelligence contributed to higher valuations for related startups. However, investment in regions facing geopolitical risks remained subdued, and the
    monetization of invested capital continued to be delayed due to a contraction in the IPO market.

    In response, KIC aims to secure stable long-term returns by building a well-diversified portfolio across regions and strategies, with a focus on high-quality, defensive assets.
    탭 내용 2
    탭 내용 3
  • In 2024, the global real estate market continued to undergo price corrections, with transaction volumes remaining below historical averages. This trend was largely driven by central banks maintaining relatively high policy rates. However, performance varied by sector. Sectors such as residential, logistics and data centers—where sustained demand growth is anticipated—saw a rebound in transaction activity, reflecting renewed investor interest.

    KIC has expanded investments in sectors with favorable supply-demand dynamics, including residential, logistics and data centers. At the same time, it has broadened its investment network by selecting high-quality GPs with deep expertise in specific markets and sectors/strategies. Considering the prolonged high-interest-rate environment and broader macroeconomic uncertainty, KIC has also strengthened its asset management practices by proactively monitoring existing holdings to maintain portfolio stability.

    Looking ahead, KIC plans to actively take advantage of current market repricing to expand new investments across regions and sectors from a medium- to longterm perspective, with the goal of enhancing overall
    portfolio returns.
    탭 내용 2
    탭 내용 3
  • Since launching its infrastructure investment program in 2010, KIC has steadily expanded its portfolio, now investing across a wide range of sectors—including telecommunications, energy, power, renewables,
    transportation, social and environmental — in North America, Europe, Asia and other regions.

    In 2024, inflation showed signs of easing, but interest rates remained elevated, continuing to exert pressure on markets. Nonetheless, long-term global trends such as the energy transition and digitalization
    remained intact, consistently creating investment opportunities. As the infrastructure market matured, secondary transactions.

    KIC actively tracks market developments to pursue opportunities in regions and sectors aligned with global structural trends. In particular, KIC has worked to diversify its portfolio not only through investments
    in major infrastructure markets such as North America and Europe and traditional sectors, but also by exploring opportunities in emerging markets and niche sectors.

    Going forward, KIC will continue to monitor global macroeconomic trends to respond agilely to infrastructure investment opportunities and build a stable and profitable portfolio.
    탭 내용 2
    탭 내용 3
  • Considering the current environment in which financial market volatility continues to be high, we plan to build a portfolio around investment strategies that are expected to generate stable absolute profits in the mid to long term.

    In addition, KIC supports overseas hedge fund investment by Korean financial institutions through the establishment of hedge fund joint investment ventures, and strives to contribute to the development of the domestic financial industry based on various hedge fund investment experiences.

    Given the sustained high volatility in financial markets, KIC plans to continue building its portfolio around strategies expected to deliver steady absolute returns over the medium to long term.

    KIC also supports the overseas hedge fund investments of Korean financial institutions through the establishment of joint ventures, leveraging its diverse hedge fund experience to contribute to the development of Korea’s finance industry.
    탭 내용 2
    탭 내용 3
  • Private debt typically involves shorter investment horizons than other alternative assets and begins generating cash flows from the early stages of investment, making it a relatively stable source of liquidity. As investments are primarily made in loans to high-quality companies, default rates tend to remain low.

    KIC's private debt portfolio is currently in the early stages of its construction, and it is expanding its investment in various forms including direct corporate lending strategies. In the future, it plans to continue investing in new strategiesLooking ahead, KIC plans to continue investing in new
    strategies to diversify the portfolio and enhance its overall stability. To further strengthen its private debt capabilities, KIC is also actively expanding partnerships with top-tier asset managers through the establishment of co-investment platforms.
    탭 내용 2
    탭 내용 3