Mirae Asset Global Investments launches Alpha Selection fund, expanding private equity lineup

Mirae Asset Global Investments announced Wednesday the launch of the Mirae Asset Alpha Selection Mixed Asset Investment Trust (private equity fund of funds type).

The Mirae Asset Alpha Selection Mixed Asset fund is a publicly offered fund of private equity funds that invests across leading domestic private equity funds.

The fund focuses primarily on long-only equity strategy funds drawn from top domestic private equity managers, while also incorporating long-short strategy funds to defend performance depending on market conditions. It is available for subscription through Mirae Asset Securities, Woori Investment & Securities, Hanwha Investment and SK Securities.

With this launch, Mirae Asset Global Investments has expanded its lineup to include a high-risk, high-return private equity fund of funds product. The company expects it to meet the diverse needs of investors seeking returns above the broader market.

Mirae Asset Global Investments has operated the Mirae Asset Hedge Fund Selection Mixed Asset (private equity fund of funds type) since 2017 — the first publicly offered private equity fund of funds in South Korea — building up operational experience and a track record in the process. The fund has posted a return of 99.75% since its inception in September 2017, and with net assets of approximately 440 billion won ($292 million), it has established itself as a leading domestic private equity fund of funds.

That fund aims to generate consistent returns regardless of market conditions by holding a broad portfolio of Korean-style hedge funds, or private equity funds, diversified across strategies including event-driven, bond, mezzanine and multi-strategy.

The newly launched Alpha Selection fund raises the weighting of long-only strategies centered on listed equities, pursuing excess returns more aggressively. The expanded lineup allows investors to choose between a stable-type and an aggressive-type product based on their risk appetite.

Publicly offered private equity funds of funds allow ordinary investors to gain diversified exposure to high-performing private equity funds in small amounts, without the 300 million won minimum investment threshold that typically bars retail participation. The recently launched National Growth Fund (public participation type) also uses a private equity fund of funds structure. The National Growth Fund is a public-private joint project that aims to raise 150 trillion won to support the broader advanced strategic industries ecosystem.

"We launched this product to broaden investor choice, drawing on the private equity and hedge fund management and selection capabilities Mirae Asset Global Investments has built over the past decade," said Seong Tae-gyeong, head of the channel solutions division at Mirae Asset Global Investments. "We expect it to serve as an efficient investment solution that reduces the burden of investing directly in individual private equity funds while still offering diversified exposure to a range of top-performing management strategies."