NH Investment & Securities Co. will pump more funds into private equity funds (PEFs) this year to further raise its investment returns.

According to sources on Sunday, the stock brokerage firm will select three to four PEFs and invest up to 30 billion won ($26.1 million) each. Its targets will include funds being raised by asset managers like IMM Investment Corp. and VIG Partners.

NH Investment & Securities has received handsome returns from its investments in PEFs for several years.

The company invested about 20 billion won into VIG Partners’ No. 2 PEF, which successfully sold Burger King Korea of late. The brokerage firm received about 16 billion won in returns, including dividends of nearly 10 billion won, from its investment in the fund after VIG Partners sold Burger King Korea to Hong Kong-based private equity firm Affinity Equity Partners at 210 billion won, making twice its original investment over the three years.

With its wider investment, the brokerage firm will gain the upper hand in winning orders from M&A customers. The company stood out in the local M&A market last year as it successfully brokered a deal to sell Homeplus, the largest ever M&A deal in Korea, and other high-profile M&A deals such as Halla Visteon and Ssangyong Cement.

A person familiar with the company said NH Investment & Securities has a strategy to leverage its investment into PEFs to expand its presence in acquisition finance offering and M&A advice.

NH Investment & Securities is also seeking to push through various overseas projects to diversify income sources in IB business. Recently, the company raised $320 million from Koran insurers and other institution investors to lead a syndicated loan to Newark Energy Center’s power plant project in New Jersey.

By Kang Doo-soon

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