In Korea, private funds are still considered an investment with high barriers to entry. Private funds, which pool a small number of investors to invest in various assets such as stocks, bonds, and real estate, have a minimum subscription of about 100 million won, making access difficult unless one is a considerable wealthy individual. Also, because the detailed management status is not disclosed, even wealthy individuals find it hard to judge which products to invest in. The mood that trust in private funds has scarcely recovered since the Lime and Optimus scandals also continues.
But Azalea Asset Management, a subsidiary of Singapore sovereign wealth funds Temasek, has stepped up, saying it will improve access to private funds for wealthy individuals in Korea. Azalea has formed a strategic partnership with Samsung Securities and plans to launch investment products as early as early next year.
On the 18th, Azalea Asset Management CEO Chue En Yaw, who visited Korea, said in an interview with ChosunBiz, "Azalea's investment philosophy and features are strategies with relatively short maturities and the ability to mitigate the 'J-curve' (losses occurring in the early stage of a fund set-up for long-term investment) by investing its own capital first."
As it developed investment products, Azalea began with market research, analyzing why private funds are not favored as a primary investment destination. As a result of the research, Azalea received feedback on several limitations inherent in private funds.
Many wealthy individuals found it difficult to judge who is a good fund manager. They also said it is inconvenient to have money tied up for a long time and to deal with multiple capital calls (deploying the committed amount proportionally when requested). Above all, many investors said they are uneasy about having to endure the J-curve.
Azalea is working with Samsung Securities to develop investment products that reflect the needs of domestic investors. As early as early next year, it plans to roll out products that employ differentiated strategies.
In particular, CEO Chue noted that Korean investors are highly interested in "distribution" products. "Unlike traditional private funds that retrieve invested capital after a set maturity, we will use an 'evergreen strategy' that allows redemptions in the middle while paying distributions to manage assets," Chue said. "For more aggressive investors seeking higher returns, we can also choose a co-investment strategy," Chue said.
Among high-net-worth individuals in Singapore, this strategy has already taken root as a new investment trend. As corporations remain unlisted for longer, investors are increasing their allocation to the private market (private alternatives market).
Chue said, "Private funds have historically the longest track records and have delivered solid performance," adding, "Over time, product structures have continuously evolved to improve access for individual investors to private funds."
Recently, products that pursue co-investments with managers have also gained popularity. Because these products can invest in individual corporations, they are said to be particularly popular among entrepreneurially minded investors.
Chue said, "Azalea has a very strong deal pipeline." Many global financial firms see Azalea as an important partner, and because they think of Azalea first when there are interesting opportunities in the market, there are many chances to participate in profitable investments.
Founded by Temasek in 2015, Azalea has grown rapidly in the private alternatives market with the goal of expanding investor access to private markets. After the launch of Seviora Group, a Temasek affiliate, in 2020, it was incorporated as a 100% subsidiary of Seviora Holdings, and the group's assets under management totaled about $60 billion (about 85 trillion won) as of June 30, 2025.