Neuberger locks down Samsung partnership

The agreement is intended to offer a broad range of investment products to the Korean market

Global asset management firm Neuberger Berman has signed a cooperation agreement to offer a range of its investment products to the Korean market with two financial services arms of Korean electronics giant Samsung. 

The deal, which closed last week, will allow Samsung Securities and Samsung Asset Management to help Neuberger offer a number of investment opportunities to the Korean investor community, including equities, fixed income and alternative investments, according to a statement. The pair will also begin to develop new strategies to offer in the future.

Samsung Securities typically offers clients brokerage, wealth management and investment advisory services, managing assets of over KRW 100 trillion ($927 million; €740 million), while Samsung Asset Management offers discretionary investment services and manages around KRW 127.4 trillion – the largest in the country, according to the firm. 

“With this new partnership, we are able to secure a broader range of global products to create a diversified client portfolio,” Youngwoan Chung, of Samsung Securities, said. “Going forward, we will proactively develop differentiated new products combining Neuberger Berman's resources and Samsung's investment ideas.”

Young June Park, of Samsung Asset Management, added, “We expect that this agreement will allow for a meaningful and continuous exchange of expertise between Samsung and Neuberger Berman on areas such as portfolio management, market intelligence, product development and others.”

Neuberger, the 75-year old independent asset manager based in New York, has started to strengthen its hand in the Asia Pacific region.

In July, the firm hired private equity fundraising specialist Clifford Chiu to join its Asia Pacific team as a senior advisor to build the firm’s client base across Asian markets. Chiu was most recently at private equity giant Kohlberg Kravis Roberts, where he left in June this year and had helped raise the largest private equity vehicle ever in the region at $6 billion.

Although he is not solely focused on private equity at Neuberger, “given his background and the strength of the Neuberger Berman Private Equity platform, we anticipate there to be synergies in private equity,” a spokesman for the firm told PEI at the time.

Of the Samsung deal, Neuberger Berman chief investment officer; Andrew Komaroff, said, “We are very pleased to partner with Samsung Securities and Samsung Asset Management as Neuberger Berman expands its footprint in Korea and Samsung seeks to broaden its global investment line-up. We see this as an excellent example of joint cooperation among three significant firms and we look forward to working with Samsung on behalf of clients going forward.”