Yellow Umbrella Mutual Aid Fund, a savings arm for South Korea’s small-sized business owners, will commit $270 million (320 billion won) to domestic private equity funds (PEFs) and venture capital (VC) funds, Sedaily reported last week.
According to the report, the $270 million commitment broke down into $169 million for blind-pool PEFs and $101 million for VC funds.
For PEFs, the Yellow Umbrella Mutual Aid Fund will invest a total of $118 million in up to four private equity fund managers that have won a mandate from it. Yellow Umbrella will commit $51 million in up to two new managers.
It will also select up to eight managers for the $93 million general VC investment and up to two rookie managers for the maximum $8 million mandate.
Each of the funds has a five-year investment period which can be extended. It will receive applications by August 13.
The Korean fund for small firms, which managed about $10 billion as of the end of the last year, has been aggressively expanding the portion of alternative investments to increase returns, local media said. (Reporting by Kyoungho Lee)