Exclusive: Korea’s Hangang to launch $188m solar debt fund

The firm’s third and largest vehicle of its kind is targeting capital from domestic institutional investors.

Seoul-based Hangang Asset Management plans to raise 200 billion won ($188 million; €156 million) for a new solar debt fund expected to close at the end of next month.

The new blind pool fund will be the third solar debt-focused vehicle managed by the two-year-old fund manager, which was founded in July 2015, Infrastructure Investor has learnt.

The firm is looking to raise capital from domestic institutional investors. Its current funds, including infrastructure and real estate, are backed by Korean investors, according to a spokesperson from Hangang. It currently manages $844 million across real estate and infrastructure.

Hangang’s debut solar debt fund, which was also the first infrastructure fund launched by the company, was closed on $100 million in September 2016, after a three-month fundraising period. The second solar debt vehicle, with a fund size of $70 million, was raised and closed between June and August 2017.

The fund manager also runs three other infrastructure funds – with sizes of $25 million, $40 million and $36 million – that invest debt and equity in government housing facilities, senior debt in military facilities and debt and equity in wastewater treatment facilities. These are project-based closed-ended funds, with a key focus on subordinated debt.

The Hangang spokesperson said the manager’s infrastructure funds are focused on the domestic market, but the team is looking for overseas opportunities as well. All its real estate vehicles have been investing in overseas markets such as Australia and the US.