This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:38 p.m. on Dec. 8, 2025.
Hillhouse Investment, a private equity fund (PEF) manager founded by Chief Executive Zhang Lei (张磊) from China, has emerged as a leading bidder in the acquisition race for IGIS Asset Management, Korea's largest real estate asset manager, by offering the highest price. The preferred bidder for IGIS Asset Management is expected to be announced soon, and Hillhouse Investment is said to be the front-runner.
Hillhouse Investment says it is not a Chinese PE on the grounds that Zhang studied in the United States and acquired Singaporean nationality, but strictly speaking it can be classified as Chinese. There are growing concerns that a major domestic house that manages public funds such as the National Pension Service could be taken over by Chinese capital.
According to the investment banking (IB) industry on the 8th, Hillhouse Investment, which participated in the main bid for the sale of the management rights of IGIS Asset Management, is said to have submitted an acquisition price of about 1.1 trillion won. In the main bid, Heungkuk Life offered about 1.05 trillion won, and Hanwha Life proposed a price in the mid-to-high 900 billion won range.
Initially, the industry largely expected a two-way contest between Heungkuk Life, which wrote the highest price, and Hanwha Life, which has capital capacity and regulatory response capabilities. However, the landscape shifted as Hillhouse Investment secured a price advantage. Observers say the confrontation between domestic corporations and foreign private equity funds has become clearer.
Hillhouse Investment is an asset manager founded by Zhang, who was born in Henan, China, and acquired Singaporean nationality. After studying international finance at Renmin University of China and completing an MBA at Yale School of Management, Zhang founded Hillhouse in 2005 with Yale's endowment as seed capital. Having grown through investments in Chinese big tech such as Tencent and JD.com, it is known to manage a significant portion of Chinese capital along with global funds. In Korea, Hillhouse participated in major investments including Woowa Brothers (Baemin), Kurly, and Krafton. However, this is the first attempt to acquire a Korean corporation outright.
Because IGIS Asset Management is a financial company and must undergo a major shareholder eligibility review by the Financial Services Commission (FSC), the industry is focused on whether this deal will succeed. The fact that it manages the retirement funds of our people is also an important factor.
IGIS Asset Management started as an independent manager in the early 2010s and, as it grew into the industry's top player, has received large-scale mandates from domestic pension funds and mutual aid associations, including the National Pension Service. Its assets under management (AUM) total about 67 trillion won. This is why there are warnings that if a Chinese PE becomes the new owner of IGIS Asset Management, Korea would have to consider potential conflicts with domestic finance and real estate policy and even the possibility of capital outflows.
A similar controversy erupted earlier this year during Affinity Equity Partners' acquisition of LOTTE Rental. As KY Tang, the founder of Affinity, is a Chinese Malaysian, and documents filed with the U.S. Securities and Exchange Commission (SEC) listed the fund's main base at a Hong Kong address, its "Chinese-speaking world tint" became pronounced.
Concerns grew because Affinity had acquired SK Rent-a-Car before LOTTE Rental and was expected to dominate the domestic rental car market. LOTTE Rental and SK Rent-a-Car are the No. 1 and No. 2 players in the domestic rental car industry.
At the time, Affinity denied the claims, saying, "We are a global PEF, not a Chinese or Hong Kong fund," and strongly pushed back, saying it would consider legal action.
Hillhouse is also trying to "erase its Chinese tint." Its website currently describes it only as an "investment firm founded in Asia in 2005."
The Wall Street Journal (WSJ) reported in November last year in an article about Zhang Lei and Hillhouse that "Hillhouse has reduced Chinese staff and removed many explicit references to China from its website."
There is room for debate over distinguishing a private equity fund's nationality. Even so, in the wake of the Coupang personal data leak and technology leak issues, more domestic investors are keeping their distance from Chinese capital, according to the broader market mood. A person in the industry said, "A Chinese fund tried to participate in an investment round for a domestic corporation with advanced technology, but the strategic investor (SI) objected, and the plan fell through."