Hanyang Securities announced on the 9th that it has completed registration as a general partner (GP) for institutional private equity funds, marking its expansion into private fund business capabilities.
Institutional private equity funds are private collective investment vehicles that raise capital from institutional investors to invest in corporate equity securities and mezzanine instruments, with the aim of active management participation such as enhancing corporate value and improving governance structures. Hanyang Securities will serve as the GP, the core entity responsible for managing private fund assets.
The GP operating model consists of three stages: "fund formation," which begins with raising capital from limited partners (LPs); "asset management," which increases corporate value through identifying and investing in promising companies; and "profit distribution," which involves distributing returns based on investment performance and collecting management fees.
Hanyang Securities is also moving to scale up its business by adding institutional PEF to its management portfolio. The scope of GP participation will expand from small and medium-sized enterprises and venture companies to include large corporations and listed companies overall.
A Hanyang Securities official said, "As our assets under management (AUM) grow, we plan to strengthen our deal sourcing competitiveness and maximize profitability through increased management fees from larger funds combined with principal investment (PI investment)."