South Korea’s Shinhan Financial Group will add an alternative investment business to strengthen its investment banking function.

According to sources from the investment banking industry on Thursday, its private equity fund operating unit Shinhan Private Equity Inc. will be rebranded as Shinhan Alternative Investment next week to expand its investment portfolio beyond its mainstay private equity fund to real estate, raw materials, hedge fund, infrastructure and venture companies. The newly established unit will be led by Kim Hee-song, chief executive of Shinhan PE.

Shinhan PE was founded in December 2004 right after the country licensed private equity funds. The unit of one of the largest financial groups so far has not lived up to expectations. It was excluded in the private syndicate to manage funds for the National Pension Service this year due to its poor performance.

By Han Woo-ram and Choi Mira

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