HONG KONG (Yonhap) -- Korea's No. 2 brokerage house KDB Daewoo Securities Co. plans to set up a US$10 billion private equity fund focused on social infrastructure across Asia and Europe, company officials said Thursday.
The Hong Kong subsidiary of KDB Daewoo Securities is currently raising the new fund, which is aimed at investing in water supply and drainage systems, harbors and ports, and power plants, the officials said.
Investments in social overhead capital usually produce stable and reasonable returns, compared to investments in companies.
It is the first time for a South Korean financial institution to seek raising $10 billion overseas to establish a private equity fund.
KDB Daewoo Securities said it is seeking to enhance its global business through building joint ventures in China and Mongolia, and investing in real assets, including properties in the U.S. and Europe.
A private equity fund is a collective investment scheme used for making investments in various equity securities. It is typically raised and managed by investment professionals.