[This article was reported on ‘Radar M’, a paid media specializing in economic and capital markets, ..

Shinhan Investment & Securities will create a 50 billion won private equity loan fund (PDF) to support auto parts suppliers with Hyundai Commercial. The Private Debt Fund (PDF) is a private equity fund that supplies funds directly to companies in the form of loans and is used as a means of structured financing to replace bank loans or public offering bond markets.

According to the investment bank (IB) industry on the 14th, Shinhan Investment & Securities established a “Shinhan Siera Mobility Win-Win Financial Institutions Private Equity Investment“ earlier this month to supply funds to suppliers in the value chain of finished vehicles. Hyundai Commercial will participate as an investor, while Shinhan Investment & Securities and Sierra Investment, a domestic private equity fund (PEF) manager, will take charge of the joint management (GP).

Under the OEM (OEM) mass production system, the fund will be the primary target of investment. The purpose is to ease the short-term liquidity burden of individual companies and support the stable operation of the mobility value chain by supplying funds for operating companies, facility investment, and industrial conversion research and development (R&D).

Hyundai Commercial, a financial company exclusively responsible for commercial vehicles of Hyundai Motor Group, participated as an investor based on its understanding of the mobility industry and network within the industrial ecosystem. The purpose is to support stable financing of suppliers and increase the sustainability of the mobility value chain as a whole.

Sierra Investment, which is in charge of fund management with Shinhan Investment & Securities, is a PEF management company established in 2022. Sierra Investment has acquired 80% of its stake, including Hyundai Rental Care’s management rights, from Hyundai Home Shopping for 137 billion won at the end of that year and has continued its management.

Shinhan Investment & Securities said, “This fund is a case in line with the purpose of productive finance to shift the flow of funds to the real industry and small and medium-sized companies,” adding, “We intend to contribute to the stability and competitiveness of the industrial ecosystem by supplying funds to suppliers in the mobility value chain in a timely manner.”

“The mobility industry is an area where the competitiveness and supply chain stability of suppliers are directly connected to the sustainability of the entire industry,” Hyundai Commercial said. “Through this participation, we will contribute to smooth financing of suppliers and stabilization of value chains, and help create a win-win financial model in which industry and finance grow together.”