The Korea Federation of Community Credit Cooperatives (KFCC) has embarked on finding an external manager for a blind-pool fund. The KFCC will notify individual managers of the results next month at the earliest.
According to related industries on May 22, the KFCC received proposals from private equity fund managers who are preparing to form blind-pool funds. The KFCC has already finished evaluating some managers.
The KFCC stopped alternative investments in 2012 at the urging of the Ministry of the Interior and Safety. However, as low interest rates have made achieving the target rate of return difficult, the KFCC decided to increase alternative investments. After organizing divisions for the project, the KFCC accelerated its open-end fund investment project earlier this month.
Although applications will close next week, more than 30 operators have knocked on the door of the KFCC. It plans to invest between 30 billion won ($24 million) and 50 billion won each to three or four operators. The competition rate is expected to be at least eight to one. (Reporting by Rho Ahrum)