NH Absolute Return Partners (NH ARP), the Singapore subsidiary of NH Investment & Securities, has secured the qualification to manage private equity funds without an asset cap in Singapore. NH Investment & Securities plans to significantly expand its fund management scale and actively develop NH ARP into a key overseas hub, on par with its Hong Kong and New York operations.

According to the financial investment industry on the 18th, NH ARP obtained the Accredited Investors Licensed Fund Management Company (AI LFMC) license from the Monetary Authority of Singapore (MAS) in February. With this license, the previous private fund management cap of SGD 250 million (approximately KRW 270 billion) has been removed. Established in 2008, NH ARP is the only overseas subsidiary of NH Investment & Securities operating as a full-fledged asset management company.

Singapore’s LFMC licenses are broadly classified into three tiers. The lowest tier is the LFMC with an asset management cap. The next level is the AI LFMC, which allows unlimited management of private funds for accredited investors. The highest tier, the Retail LFMC, permits both private and public fund management in Singapore. Among Korean financial institutions, Hanwha Asset Management has obtained a Retail LFMC license, while firms such as Kiwoom Securities hold AI LFMC licenses.

With the acquisition of the AI LFMC license, NH Investment & Securities intends to actively nurture its Singapore operation as a strategic overseas base. NH ARP recorded net profits of only KRW 200 million each in 2023 and 2024.

One major upside of the AI LFMC license is that it enables the establishment and management of funds under the United Nations Green Climate Fund (GCF) framework. In July last year, NH Investment & Securities became the first Asian securities firm to be selected as a GCF-accredited fund establishment and management institution. NH ARP plans to raise a USD 200 million (approximately KRW 280 billion) Climate Technology Fund (CTF) by the first quarter of next year. Through the CTF, the firm aims to actively identify and invest in global technology companies across green sectors such as renewable energy, low-carbon transportation, sustainable agriculture, water treatment, and waste management.

NH ARP is also accelerating its overseas business expansion by leveraging synergies with affiliated companies. Following the launch of new funds, it plans to conduct joint marketing initiatives with NH Hedge Asset Management. In addition, NH ARP is reportedly managing a Southeast Asia-focused fintech investment fund in collaboration with NH NongHyup Capital.

An industry insider commented, “Singapore offers strong investment infrastructure and a favourable fund management environment,” adding, “With the abolition of the RFMC license—the lowest tier—some fund managers appear to have been phased out.”