South Korean private equity firm Stonebridge Capital’s real estate and infrastructure investment subsidiary Stonebridge Alternative is making a fresh start under the new name of Stonebridge Asset Management.
Sources said on May 15 that the PE firm had also sought approval from the national financial regulator for an asset management business license under the tentative name of Stonebridge Alternative.
Stonebridge Capital initially planned to get approval from the regulator at the end of February, but the process has been delayed due to the COVID-19 pandemic. The subsidiary is still expected to show results as early as the first half of this year as it has continued sourcing and structuring deals while the changes take effect.
Stonebridge Asset Management plans to invest mainly in real estate, energy and infrastructure assets at home and abroad. The alternative investment firm is considering investing in developed countries such as the U.S. and Europe, rather than high-risk developing countries. It plans to put money into energy and infrastructure assets like electricity generation, renewable energies and data centers and real estate assets like golf courses and logistics centers.
Stonebridge Asset Management is expanding its staff, with plans to hire two to three more personnel at executive director level or the managerial level. The company is currently led by Paek Sang-seok, former Stonebridge Venture CFO. Jung Seung-hun, who spent his earlier career at Daewoo Securities and Macquarie Asset Management, is the CIO of the firm.
With the establishment of Stonebridge Asset Management, Stonebridge Capital will be able to strengthen its real estate and infrastructure investment business. The PE firm has long been mulling a business diversification to boost its presence as a major player in alternative investments. Stonebridge Capital reportedly decided at the end of last year to create a separate corporate body for real estate and infrastructure investment to assert its independence and professionalism.
Stonebridge is now expected to establish a holding company and put the PE firm Stonebridge Capital, venture capital arm Stonebridge Venture, real estate and infrastructure investment arm Stonebridge Asset Management and its Hong Kong office under the same umbrella. (Reporting by Kim Hye-ran)
With the establishment of Stonebridge Asset Management, Stonebridge is equipped to become a comprehensive alternative investment group, having four subsidiaries specializing in PE, venture capital and overseas alternative investment. Industry watchers expect Stonebridge Asset Management to become established relatively quickly thanks to Stonebridge. (Reporting by Kim Hye-ran)