It should not end with finding and investing in good corporations. I believe real investing is growing good corporations into even better corporations.
Co-CEO Nam Du-u of Life Asset Management said in an interview with ChosunBiz at the Yeouido headquarters in Seoul on the 16th that Life Asset Management's investment philosophy is not to stop at putting money into corporations but to become a partner in their growth.
Life Asset Management surpassed 5 trillion won in assets under management (AUM) five years after its launch, growing into the largest among firms established since 2020. Recently, it was also selected as a mid-sized general partner (GP) for the Public Growth Fund, which aims to foster advanced industries, recognizing its investment capabilities.
Nam cited investment that discovers hidden corporations as the secret to the company's growth. He said Life Asset Management's differentiated edge is its engagement strategy—shareholder involvement—that goes beyond investing for revenue to think together about corporations' business strategies, fundraising, and follow-on investments.
He said the core of private investment is not to find already famous corporations but to uncover potential that the market has yet to discover, adding that an asset manager's role is to grow good corporations into even better corporations.
Nam entered the securities industry in 1995 and, after experiencing the 1997 Asian financial crisis (IMF), sharpened his value-investing philosophy. In 2006, he confirmed the potential of alternative investments by earning more than 10 times in revenue from private corporation investments, which led him to decide to start a business.
◆ Value-investing master and founding… three co-managers accelerate growth
After founding Dareum Asset Management in 2019, he embarked on a second founding in 2021 by changing the company name to Life Asset Management together with Chair Lee Chae-won, a master of value investing, and CEO Kang Dae-gwon, an equity management expert.
Life Asset Management has built a three-person co-management system in which Chair Lee Chae-won handles value-stock investing, CEO Kang Dae-gwon manages listed equities, and Nam oversees private and alternative investments. Nam cited this organizational structure as another strength of the company.
He said domestic asset managers are excessively divided into equities, real estate, and alternatives, but the actual capital market is connected in a single flow from startup investment to initial public offerings (IPO), listed equities, private equity (PE), and mergers and acquisitions (M&A). He added that the three discuss investment direction every week and, in the investment committee, share ideas on listed and private investments to complement each other's strengths.
He added that Life also carries the meaning of long-term investment for everyone and a pledge to become the best asset manager with life on the line.
◆ Return of 582% at HANJUNG NCS… "More than the item, the CEO"
A representative success case for Life Asset Management is its investment in HANJUNG NCS(107640), which has grown into a specialist corporation in cooling systems for energy storage systems (ESS). After the initial investment, it recorded a return of about 582%, becoming the company's representative track record.
When Nam first visited the company in 2017, he noted that HANJUNG NCS, then an auto parts maker, was preparing to shift from internal combustion engine-focused businesses to the electric vehicle and ESS markets. Even when the company could not attract investment due to a cash crunch, Life Asset Management trusted the CEO's vision and execution and invested about 10.6 billion won through early 2022, and later participated in a convertible bond (CB) investment to support entry into a U.S. plant.
He said private investment is investing not in already finished companies but in growing corporations, so the CEO's qualities matter as much as the item. He added that after meeting the CEO several times and visiting the plant in person, if he becomes convinced that this person will surely get it done, he stays to the end.
This investment philosophy recently led to selection as a mid-sized GP for the Public Growth Fund.
Nam said that although the firm does not have a long track record, he believes it was recognized for its capabilities and track record in advanced industry investments. He added that he feels a greater sense of responsibility than ever, given that it manages funds contributed by the public.
Life Asset Management plans to expand investments not only in AI and space and defense, robots, and energy, but also in advanced materials. Nam projected that as the AI industry grows, the value of core materials corporations will rise further.
He said the semiconductor peak argument is only about stock prices and does not mean the industry's growth potential has ended. He added that the core materials and equipment used in semiconductors and secondary batteries will continue to advance, and that Korea also has many small and midsize companies with world-class technological prowess.
He added that real investing is not following corporations others already call good, but first finding corporations the market has yet to discover. He said he wants to be a growth partner who not only invests money in corporations but also works on fundraising and strategy, and even connects them with good investors.
◆ Entering the public fund business "will lower the bar for professional investing"
Life Asset Management received approval for public collective investment business from the Financial Services Commission on the 15th. It comes about five years after it launched as a general private fund manager in 2021.
Nam explained that entering the public market is not simply business expansion but a process of broadening choices for retail investors.
He said the greatest significance of entering the public market is to allow even small retail investors to benefit from the verified investment capabilities demonstrated in private fund management. He added that the company will enable more people to experience the professional management services that only high-net-worth individuals could receive.
He added that while individuals directly trading overseas stocks or single names is one way, in an increasingly complex market, a culture of indirect investing through professional managers will become more important. He said he wants to broaden individual investors' choices through public funds and, in the long term, become a manager that provides stable long-term returns in the retirement pension market.
Nam added that luck played a part in reaching this point, but what mattered more was consistently delivering good results to clients. He said he believes the most important yardstick is not the manager's size but how much revenue clients earned.