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Around 70% of South Korean key asset owners will expand their exposure to global private debt, expecting steady streams of cash flow, according to a recent survey of 26 Korean limited partners. Direct lending and infra debt were picked as the preferred strategies, the survey found. The Korea Economic Daily has conducted a survey of 26 limited partners in Korea on their alternative investment and manager selection. The LPs manage a combined 381.1 trillion won ($308.9 billion) in alternative assets, which account for an average of 28.4% of their total AUM. Some 23 out of the 26 LPs currently manage 21.8 trillion won ($17.7 billion) in overseas private debt.To view responses of individual institutions on their alternative asset allocation and fund manager selection, please visit Asset Owners Report.According to the survey, 69.2% of LPs will increase their overseas private debt investment, with another 19.2% choosing to maintain their private debt portfolios at current levels. The remaining didn’t respond, and none of the LPs were looking to cut exposure to private debt. .j-chart {font-family: 'Noto Sans KR', sans-serif; margin-top: 30px;} .j-chart-txt-div {/*margin-left: 5%;*/} .j-chart-h5 {font-size: 21px; font-weight: 600; margin-bottom: 20px; letter-spacing: -0.2px;} .j-chart-h6 {font-size: 15px; font-weight: 400; margin:-5px 0 20px 0} .j-chart-p {display: flex; justify-content: space-between;} .j-chart-p p {font-size: 13px; font-weight: 300; margin-bottom: 0!important; margin-top: 0px;} .j-chart-sub-p {display: flex; margin-left: 6%;} .j-chart-sub-p p {font-size: 14px; font-weight: 400; color: #374140; margin-bottom: 0!important; width: 50%; text-align: center; padding-bottom: 0px;} .d-pc-none {display: none!important} .d-pc-block {display: block!important} .txt-center {text-align: center; margin-top: 50px} @media screen and (max-width: 765px) { .j-chart-txt-div {margin-left: 0%;} .j-chart-p {display:block; } .j-chart-p p {margin-top: -6px;} .j-chart-h6 {margin:2px 0 20px 0} .j-chart-sub-p {margin-left: 10%;} .j-chart-sub-p p {font-size: 13px; padding-bottom: 10px;} .j-chart-h5 {font-size: 22px} .txt-center {text-align: left; margin-top: 20px} .d-pc-none {display: block!important} .d-pc-block {display: none!important} } Whether to increase overseas PD exposure Unit: % var jchartpie = document.getElementById('j-myChart3'); var labels= ['Increase', 'Hold', 'Decrease', 'No response'] new Chart(jchartpie, { type: 'pie', data: { datasets: [{ data: [69.2, 19.2, ,11.6], backgroundColor: ["rgba(29, 178, 246, .2)","rgba(244, 86, 74, .2)","rgba(152, 201, 92, .2)","rgba(255, 199, 32, .2)"], borderColor: ["rgba(29, 178, 246, .7)","rgba(244, 86, 74, .7)","rgba(152, 201, 92, .7)","rgba(255, 199, 32, .7)"], borderWidth: 1, }], labels: labels, }, options: { tooltips: { titleFontSize: 17, bodyFontSize: 13, }, responsive: true, legend: { position: 'top' }, responsiveAnimationDuration: 0, // 크기 변경후 다시뜨는 애니메이션 시간 0초 plugins: { deferred: {enabled: false}, datalabels: { color: '#171717', font: { weight: 'bold', size: 16 }, //anchor: 'end', //clamp: 'true', //align: 'end', padding: 5, borderRadius : 15, //anchor: 'top', formatter: function(value, context) { return (value > 0) ? value+ "%" : null //data가 10 미만이면 숫자 값은 출력되지 않습니다. }, }, } } }) According to the survey, LPs are looking for stable income from private debt. Some 65.4% are expecting steady cash flow, with another 15.4% are pursuing diversification from overseas private debt. Some 3.8% said they want all the values of steady cash flow, diversification and fixed income substitutes. As seen in a similar poll conducted last year, direct lending topped the credit investment choice. Some 61.5% will expand direct lending, and 50% and 42.3% will increase infrastructure debt and senior secured debt, respectively. None of the LPs will reduce direct lending or infrastructure debt. The least-preferred option was special situations & opportunistic, scoring only 7.7%. Also, 57.7% said they will maintain their current exposure to mezzanine debt and special situations & opportunistic debt. Exposure to PD by strategy Unit: % var ctx = document.getElementById("j-myChart1").getContext('2d'); var myChart = new Chart(ctx, { type: 'horizontalBar', data: { labels: ['Direct lending', 'Distressed debt', 'Mezzanine debt', 'Infrastructure debt', 'Real estate debt', 'Special situation & Opportunistic', 'Senior secured', 'Unitranche'], datasets: [{ label: 'Increase', backgroundColor: "rgba(29, 178, 246, .2)", borderColor: "rgba(29, 178, 246, .7)", borderWidth: 1, data: [61.5, 15.4, 23.0, 50.0, 38.5, 7.7, 42.3, 30.8], }, { label: 'Hold', backgroundColor: "rgba(244, 86, 74, .2)", borderColor: "rgba(244, 86, 74, .7)", borderWidth: 1, data: [26.9, 46.1, 57.7, 34.6, 34.6, 57.7, 38.5, 46.1], }, { label: 'Decrease', backgroundColor: "rgba(152, 201, 92, .2)", borderColor: "rgba(152, 201, 92, .7)", borderWidth: 1, data: [0, 26.9, 7.7, 0, 11.5, 19.2, 3.8, 7.7], }, { label: 'No response', backgroundColor: "rgba(255, 199, 32, .2)", borderColor: "rgba(255, 199, 32, .7)", borderWidth: 1, data: [11.6, 11.6, 11.6, 15.4, 15.4, 15.4, 15.4, 15.4], } ], }, options: { segmentShowStroke: false, responsive: true, scales: { xAxes: [{ stacked: true, gridLines: { display: false, }, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, max: 100, }, }], yAxes: [{ stacked: true, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, //max: 17, fontWeight: 'bold', fontSize: 14, fontColor: 'black' }, }] }, tooltips: { titleFontSize: 17, bodyFontSize: 13, filter: function (tooltipItem, data) { var label = data.labels[tooltipItem.index]; console.log(tooltipItem, data, label); if (label == "Red") { return false; } else { return true; } }, //특정 단어 덧대는 툴팁 방법 /*tooltips: { titleFontSize: 17, bodyFontSize: 13, callbacks: { label: function(tooltipItem) { return "$" + Number(tooltipItem.yLabel) + " and so worth it !"; } },*/ }, maintainAspectRatio: true, legend: { display: true, position: 'top', padding: 10, border: 0 }, plugins: { deferred: {enabled: true, delay: 400}, datalabels: { color: '#171717', borderWidth: 0.7, borderColor: false, borderRadius : 5, //anchor: 'end', //scales: 'left', //align: 'end', //clamp: 'true', backgroundColor: false, padding: 8, //offset: -55, font: { //weight: 'bold', size: 13 }, formatter: function(value, context) { if(value < 5) { return null } else { return value + '%' } }, }, }, } }); var ctx = document.getElementById("j-myChart2").getContext('2d'); var myChart = new Chart(ctx, { type: 'bar', data: { labels: ['Direct lending', 'Distressed debt', 'Mezzanine debt', 'Infrastructure debt', 'Real estate debt', 'Special situation & Opportunistic', 'Senior secured', 'Unitranche'], datasets: [{ label: 'Increase', backgroundColor: "rgba(29, 178, 246, .2)", borderColor: "rgba(29, 178, 246, .7)", borderWidth: 1, data: [61.5, 15.4, 23.0, 50.0, 38.5, 7.7, 42.3, 30.8], }, { label: 'Hold', backgroundColor: "rgba(244, 86, 74, .2)", borderColor: "rgba(244, 86, 74, .7)", borderWidth: 1, data: [26.9, 46.1, 57.7, 34.6, 34.6, 57.7, 38.5, 46.1], }, { label: 'Decrease', backgroundColor: "rgba(152, 201, 92, .2)", borderColor: "rgba(152, 201, 92, .7)", borderWidth: 1, data: [0, 26.9, 7.7, 0, 11.5, 19.2, 3.8, 7.7], }, { label: 'No response', backgroundColor: "rgba(255, 199, 32, .2)", borderColor: "rgba(255, 199, 32, .7)", borderWidth: 1, data: [11.6, 11.6, 11.6, 15.4, 15.4, 15.4, 15.4, 15.4], } ], }, options: { segmentShowStroke: false, responsive: true, scales: { xAxes: [{ stacked: true, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, max: 100, fontSize: 12, fontColor: 'black' }, }], yAxes: [{ stacked: true, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, max: 100, fontWeight: 'bold', fontSize: 12, fontColor: 'black' }, }] }, tooltips: { titleFontSize: 15, bodyFontSize: 12, filter: function (tooltipItem, data) { var label = data.labels[tooltipItem.index]; console.log(tooltipItem, data, label); if (label == "Red") { return false; } else { return true; } }, //특정 단어 덧대는 툴팁 방법 /*tooltips: { titleFontSize: 17, bodyFontSize: 13, callbacks: { label: function(tooltipItem) { return "$" + Number(tooltipItem.yLabel) + " and so worth it !"; } },*/ }, maintainAspectRatio: true, legend: { display: true, position: 'top', padding: 10, border: 0 }, plugins: { deferred: {enabled: true, delay: 400}, datalabels: { color: '#171717', borderWidth: 0.7, borderColor: false, borderRadius : 5, //anchor: 'end', //scales: 'left', //align: 'end', //clamp: 'true', backgroundColor: false, padding: 8, //offset: -55, font: { //weight: 'bold', size: 13 }, formatter: function(value, context) { if(value < 5) { return null } else { return value + '%' } }, }, }, } }); Blind pool funds are the most preferred vehicle for global private debt investment, chosen by 73.1% of those polled. Also, none of the respondents selected joint ventures or direct investments.The LPs were inclined to focus on developed countries in the West for private debt investment. By region, 50% and 42.3% plan to increase their current exposure to North America and Europe, respectively. Only 3.8% will expand the private debt exposure to Asia, and 65.4% will maintain current exposure to the region. Exposure to PD by region Unit: % var ctx = document.getElementById("j-myChart4").getContext('2d'); var myChart = new Chart(ctx, { type: 'horizontalBar', data: { labels: ['North America', 'Europe', 'Asia'], datasets: [{ label: 'Increase', backgroundColor: "rgba(29, 178, 246, .2)", borderColor: "rgba(29, 178, 246, .7)", borderWidth: 1, data: [50.0, 42.3, 3.8], }, { label: 'Hold', backgroundColor: "rgba(244, 86, 74, .2)", borderColor: "rgba(244, 86, 74, .7)", borderWidth: 1, data: [38.5, 46.2, 65.4], }, { label: 'Decrease', backgroundColor: "rgba(152, 201, 92, .2)", borderColor: "rgba(152, 201, 92, .7)", borderWidth: 1, data: [0, 0, 15.4], }, { label: 'No response', backgroundColor: "rgba(255, 199, 32, .2)", borderColor: "rgba(255, 199, 32, .7)", borderWidth: 1, data: [11.5, 11.5, 15.4], } ], }, options: { segmentShowStroke: false, responsive: true, scales: { xAxes: [{ stacked: true, gridLines: { display: false, }, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, max: 100, }, }], yAxes: [{ stacked: true, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, //max: 17, fontWeight: 'bold', fontSize: 14, fontColor: 'black' }, }] }, tooltips: { titleFontSize: 17, bodyFontSize: 13, filter: function (tooltipItem, data) { var label = data.labels[tooltipItem.index]; console.log(tooltipItem, data, label); if (label == "Red") { return false; } else { return true; } }, //특정 단어 덧대는 툴팁 방법 /*tooltips: { titleFontSize: 17, bodyFontSize: 13, callbacks: { label: function(tooltipItem) { return "$" + Number(tooltipItem.yLabel) + " and so worth it !"; } },*/ }, maintainAspectRatio: true, legend: { display: true, position: 'top', padding: 10, border: 0 }, plugins: { deferred: {enabled: true, delay: 400}, datalabels: { color: '#171717', borderWidth: 0.7, borderColor: false, borderRadius : 5, //anchor: 'end', //scales: 'left', //align: 'end', //clamp: 'true', backgroundColor: false, padding: 8, //offset: -55, font: { //weight: 'bold', size: 13 }, formatter: function(value, context) { if(value < 5) { return null } else { return value + '%' } }, }, }, } }); var ctx = document.getElementById("j-myChart5").getContext('2d'); var myChart = new Chart(ctx, { type: 'bar', data: { labels: ['North America', 'Europe', 'Asia'], datasets: [{ label: 'Increase', backgroundColor: "rgba(29, 178, 246, .2)", borderColor: "rgba(29, 178, 246, .7)", borderWidth: 1, data: [50.0, 42.3, 3.8], }, { label: 'Hold', backgroundColor: "rgba(244, 86, 74, .2)", borderColor: "rgba(244, 86, 74, .7)", borderWidth: 1, data: [38.5, 46.2, 65.4], }, { label: 'Decrease', backgroundColor: "rgba(152, 201, 92, .2)", borderColor: "rgba(152, 201, 92, .7)", borderWidth: 1, data: [0, 0, 15.4], }, { label: 'No response', backgroundColor: "rgba(255, 199, 32, .2)", borderColor: "rgba(255, 199, 32, .7)", borderWidth: 1, data: [11.5, 11.5, 15.4], } ], }, options: { segmentShowStroke: false, responsive: true, scales: { xAxes: [{ stacked: true, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, max: 100, fontSize: 12, fontColor: 'black' }, }], yAxes: [{ stacked: true, ticks: { beginAtZero: true, steps: 10, stepValue: 5, //min: 0, max: 100, fontWeight: 'bold', fontSize: 12, fontColor: 'black' }, }] }, tooltips: { titleFontSize: 15, bodyFontSize: 12, filter: function (tooltipItem, data) { var label = data.labels[tooltipItem.index]; console.log(tooltipItem, data, label); if (label == "Red") { return false; } else { return true; } }, //특정 단어 덧대는 툴팁 방법 /*tooltips: { titleFontSize: 17, bodyFontSize: 13, callbacks: { label: function(tooltipItem) { return "$" + Number(tooltipItem.yLabel) + " and so worth it !"; } },*/ }, maintainAspectRatio: true, legend: { display: true, position: 'top', padding: 10, border: 0 }, plugins: { deferred: {enabled: true, delay: 400}, datalabels: { color: '#171717', borderWidth: 0.7, borderColor: false, borderRadius : 5, //anchor: 'end', //scales: 'left', //align: 'end', //clamp: 'true', backgroundColor: false, padding: 8, //offset: -55, font: { //weight: 'bold', size: 13 }, formatter: function(value, context) { if(value < 5) { return null } else { return value + '%' } }, }, }, } }); Institutional investors will proactively invest in overseas private debts this year. In the survey, 34.6% said they will invest in four or more private debt funds in 2022. Some 19.2% will invest in three and another 19.2% will bet on two private debt funds.More than half of the LPs placed importance on co-investment, sidecar and collaboration in private debt investments -- 53.8% said these are important or highly important.To view responses of individual institutions on their alternative asset allocation and fund manager selection, please visit Asset Owners Report.Participants in this survey are as follows:Public pensions and SWFNational Pension ServiceKorea Investment CorporationKorea Post - savings bureauKorea Post - insurance bureauGovernment Employees Pension ServiceTeachers' PensionMutual aids & associationsKorean Federation of Community CreditKorea Teachers' Credit UnionPublic Officials Benefit AssociationYellow Umbrella Mutual Aid FundKorea Scientists & Engineers Mutual AidMilitary Mutual Aid AssociationInsurance companiesHanwha Life InsuranceKyobo Life InsuranceShinhan Life InsuranceSamsung Fire & Marine InsuranceNongHyup Life InsuranceDB InsuranceHyundai Marine & Fire InsuranceKB InsuranceMirae Asset Life InsuranceMeritz Fire & Marine InsuranceABL Life InsurancePrudential Life InsuranceLotte InsuranceNongHyup Property & Casualty InsuranceBy Chang Jae Yooyoocool@hankyung.comJihyun Kim edited this article.
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