Teachers’ Pension has issued a request for proposals (RFP) to hire a tax advisory firm to guide the South Korean fund as it moves to boost foreign alternative investments.
The firm will be responsible for giving advice on and taking care of various tax-related matters when the fund makes alternative investments abroad. It will be involved throughout the whole process, from the structure of a deal to post-investment support, to ensure tax-efficient investments and compliance with local tax laws.
The contract period will be for 34 months from March 2021 to December 2023, and the compensation is set for the period at 750 billion won ($678.4 million). Eligible candidates are required to have a tax advisory network in developed countries, such as the U.S., the U.K. and major European countries, to properly fulfill their duties.
The RFP is part of the fund’s effort to boost alternative investments abroad in a search for higher returns. It had 20.9 trillion won in assets under management at the end of 2020, with foreign alternative investments accounting for 2.1 trillion won.
Teachers’ Pension will continue increasing its allocation to overseas alternative assets such as real estate, infrastructure and private equity, from 14.6% in 2021 to 21% in 2025, as the fund diversifies away from domestic stocks and bonds. (Reporting by Hee-yeon Han)