Global alternative investment firm Hayfin Capital Management is launching its operations in South Korea by opening a new office in Seoul. The firm aims to expand its connections with domestic institutional investors, including pension funds and insurance companies, while actively seeking investment opportunities in the shipping and maritime sectors.
On October 1, Hayfin held a press conference in Seoul to announce the opening of its office and the appointment of Choi Si-jin as the new country representative. Founded in London in 2009, Hayfin specializes in alternative investments, focusing on private debt, liquid credit, private equity solutions, and real assets. The firm currently manages approximately €45 billion (about 69 trillion won) in assets and employs over 270 staff across 13 offices worldwide.
Risa Lipsky, co-head of client coverage in Hayfin's Partner Solutions division, stated, "Hayfin has been managing funds for Korean institutional investors for several years. With the opening of the Seoul office and the addition of Choi Si-jin, we can provide better services to our Korean clients."
Hayfin views South Korea as a key market for both fundraising and investment. The firm plans to target the alternative investment needs of Korean pension funds and insurance companies while exploring investment opportunities within the domestic shipping and maritime industry.
Lipsky explained, "South Korea has a market with sophisticated institutional investor clients, and it is a market where Hayfin has conducted direct investments for several years. We maintain long-standing partnerships with major Korean shipbuilders that have global capabilities."
The strategic partnership with Samsung Life Insurance was also highlighted. Samsung Life is a strategic minority shareholder in Hayfin. The firm described its relationship with Samsung Life as a long-term partnership that goes beyond mere equity investment, involving collaboration on investment strategies.
Lipsky emphasized, "The partnership with Samsung Life is more than just a passive equity relationship. Samsung Life will directly support Hayfin's investment strategies." She added, "We plan to maintain a long-term, substantive partnership with Samsung Life and expand our relationships with more Korean institutional investors."
Choi Si-jin, Hayfin's country representative, remarked, "South Korea is one of the most developed institutional investor markets in Asia. We will work closely with our global team to strengthen our foundation in Korea and communicate more closely with domestic institutional investors."
In expanding its business in Korea, Hayfin has identified European private debt as a key investment opportunity. Domestic pension funds and insurance companies that have already increased their exposure to U.S. private debt can enhance portfolio diversification by broadening their investments to Europe.
Carlos Pla, head of portfolio management at Hayfin, noted, "Many Korean pension funds and insurance companies already have significant exposure to U.S. private debt. Increasing European exposure can provide meaningful diversification benefits not only geographically but also in terms of underlying risk."
However, he cautioned about the risks associated with the rapidly growing private debt market. In the U.S., there has been an influx of capital into private debt funds, with some funds experiencing redemption pressures. Pla stated, "The rapid growth of the private debt asset class does not mean there are no risks. As competition intensifies, underwriting standards may weaken in any market, including Europe."
To address these risks, Hayfin prioritizes capital preservation and downside risk management in its investment principles. According to company data, over 90% of its loans are structurally senior. During the investment review process, the firm conducts its own analysis of the fundamentals and creditworthiness of borrowing companies, rather than relying solely on sponsor due diligence. After investment, a dedicated post-loan management team intervenes directly in restructuring if issues arise with borrowing companies.
Pla emphasized, "Given our deal sourcing network and sector expertise built in Europe, along with our investment principles focused on capital preservation, we offer differentiated opportunities that are well-suited to provide the diversification benefits needed by Korean institutional investors."
* This article has been translated by AI.
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