The investment will make Hanwha a strategic partner of CapBridge, a partnership that will help South Korean firms and investors connect to opportunities in the global private markets.
With Hanwha partnering with CapBridge, South Korean companies can have the chance to list on 1exchange, the only regulated private securities exchanges in Singapore and work with Hanwha and CapBridge for private capital raising.
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Hanwha’s investment in the Singapore-based private markets platform comes as South Korea’s private equity market is already the third-largest in Asia with returns exceeding the public market.
Hanwha Investment & Securities is part of Hanwha Group, the South Korean multi-profile business conglomerate. The firm provides a range of services, such as asset management, brokerage, and acquisition of derivatives, bonds, and stocks.
According to Kwon Hee-baek, CEO of Hanhwa Investment & Securities, the partnership will introduce private markets opportunities to the firm’s customers across Korea and Southeast Asia.
Through this partnership, pre-IPO, family-owned businesses, and South Korean and Asian firms in the growth stages can team up with Hanwha and the CapBridge private markets platform to partner with investors around the world.
A McKinsey & Co report showed that South Korea’s private equity market is poised for more growth on the back of a steadily increasing global and local acquisitions as well as private capital commitment.
CapBridge CEO and founder Johnson Chen said they will work with Hanwha on developing more innovative financial services and products for the global private markets.
In 2018, CapBridge’s primary capital-raising platform offered about US$900 million worth of deals to 48 clients. The company plans to raise its investment offerings to about US$2 billion to 100 clients by the end of 2019.
The platform serves companies in the mid-to-late growth stage and on the funds that focus on these firms.