This article was published on March 20, 2025, at 4:40 p.m. on the ChosunBiz MoneyMove website.
Aggressive investments by real estate specialized asset management companies IGIS Asset Management and Marston Asset Management have faced setbacks from recent investigations by financial authorities. The industry is noting that the latecomer Capstone Asset Management is quickly filling the void left by these companies.
According to investment banking (IB) industry sources on the 20th, the National Pension Service recently selected KB Asset Management, Samsung SRA Asset Management, and Capstone Asset Management as the entrusted operators for a domestic real estate core platform fund with a maximum investment of 750 billion won. IGIS Asset Management was initially considered a strong candidate with its name on the shortlist, but ultimately did not make the cut. Marston Asset Management did not participate at all. This is the first time the National Pension Service has sought to select entrusted operators for domestic real estate funds since 2019, and interest is high.
For mid-sized management firms, being chosen as the entrusted operator to manage the National Pension Service's domestic real estate investment funds signifies a path to rapid growth. IGIS Asset Management and Marston Asset Management have both significantly expanded since their start in the real estate boom in the late 2010s, receiving contributions from the National Pension Service and working on various projects together as representative alternative investment managers in South Korea. IGIS Asset Management received funds from the National Pension Service in the first blind fund established in the real estate management industry in 2016, and Marston Asset Management was selected as the real estate value-add manager by the National Pension Service.
However, since the beginning of 2023, IGIS Asset Management and Marston Asset Management have been under investigation by the Financial Supervisory Service (FSS), leading to seismic shifts in the industry. IGIS Asset Management and Marston Asset Management have assets under management (AUM) of approximately 65 trillion won and 37 trillion won, respectively. Their asset sizes are significant, and they enjoy high credit ratings, with pension funds such as the National Pension Service regularly prioritizing them for funding. However, it has been reported that Marston Asset Management has effectively suspended fundraising for pension fund investments until the results of the FSS inspection are released.
Capstone Asset Management has actively entered this space. In 2024, Capstone Asset Management established a planning sales organization called the Portfolio Strategy Office, hiring executives from both IGIS Asset Management and Marston Asset Management. Kim Hwang-deok, former executive in charge of Portfolio 3 at IGIS Asset Management, and Park Jin-hwa, director who worked in the Funding Team of Portfolio 1 at Marston Asset Management, are part of this effort.
Thanks to these efforts, Capstone Asset Management is actively securing pension fund resources. In April 2024, it was selected as the entrusted operator for a 600 billion won domestic real estate loan fund under the Korea Federation of Small and Medium Enterprises, a position previously held by IGIS Asset Management. In May, it secured a partnership with the Korea Marine Transport Corporation for overseas logistics investments, attracting much attention as it became the first blind fund with global investments, attracting seven management firms. Additionally, Capstone Asset Management was selected as the operator for the domestic senior real estate loan fund for the Construction Workers Mutual Aid Association.
An industry source noted, "Capstone Asset Management has steadily increased its AUM despite the downturn in the real estate market, surpassing 5 trillion won as of August 2024," adding, "There are discussions about whether Capstone Asset Management might replace Marston Asset Management as the industry's second-largest player in light of allegations of illegal investments by its major shareholders and financial incidents involving REITs."