Korea Investment & Securities launches JV on investment banking in US with Stifel

[Photo provided by Korea Investment & Securities]

Korea Investment & Securities (KIS) will try out its investment banking skill in the Untied States through a joint venture with Missouri-based veteran multinational investment bank Stifel Financial Corp.

Korea Investment Holdings disclosed in Seoul that its brokerage arm KIS signed a deal with Stifel Financial Corp. to establish a joint venture, SF Credit Partners LLC, specializing in leveraged corporate lending and acquisition financing.

KIS has acquired a 75.1-percent stake in SF Credit Partners for 214.7 billion won ($149 million). The JV will be placed under KIS as its U.S. subsidiary. The Korean brokerage expects the strategic alliance based on equity investment will broaden its inroads into the U.S. leveraged lending market, according its disclosure.

“Seizing opportunities in the U.S. market is a critical element of the long-term growth strategy of KIS,” Korea Investment Holdings Chairman and CEO Kim Nam-goo said at a signing ceremony at Stifel’s New York office on Tuesday. “Strategic collaboration with Stifel allows both KIS and Stifel to serve clients better and extends each firm's reach into new markets.”

Following the deal, KIS will invest additional $150 million in the joint venture over the next five years.

The two partners aim to launch its JV SF Credit Partners before the end of the year after gaining regulatory approvals. While focusing on leveraged lending, the JV will expand its capabilities in deal sourcing and product development, targeting the middle market, where large-scale global bankers have limited access due to regulatory hurdles.

The two will nurture new businesses, exchange manpower, and develop new financial products.

Korea Investment Holdings shares rose 0.61 percent to 49,350 won in the early trading on Thursday.

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