10 shortlisted for NPS’ PEF external managers

The National Pension Service (NPS) has entered the second round of competition to select private equity fund (PEF) external managers in the alternative investments sector. Applicants who have passed the document screening will receive the final evaluation through on-site inspection and presentation (PT) screening.

According to related industries on June 8, the NPS notified the external managers about the results of the document screening for the selection of external managers in the domestic alternative investment sector. About 15 managers had applied as of the end of April and about 10 of them are shortlisted.

Shortlisted managers will undergo on-site inspection and PT screening over the next two to three weeks. The NPS plans to select five final managers as early as the end of this month.

The NPS is scheduled to invest a total of 800 billion won ($668 million) in PEF on alternative investments this year. Five managers will be selected and each manager will look after investments between 80 billion to 200 billion won.

The managers will be able to choose the size of investments by themselves from this year. The NPS plans to evenly divide investments if the managers hope to invest more than 800 billion won in total.

Analysts say that the burden on managers has increased due to the ongoing competition and that large external managers with more experience could be pushed out by better performing smaller operators. (Reporting by Heeyeon Han)