Korea Post’s savings unit has issued a request for proposals (RFP) seeking managers to help manage its alternative investments abroad, as the fund continues efforts to diversify away from traditional assets.
The RFP said two managers would be selected for global real assets (real estate and infrastructure) and private investments (private equity and private debt). Eligible candidates can apply for only one category. The contract term is for three years. Proposals are due on March 2, with final selections expected before the end of April.
The successful managers will be responsible for providing pre- and post-investment management services for the fund’s overseas alternative investments. Duties will include supporting the execution of investments, hedging foreign exchange exposure, providing regular reports on the status of investments, advising on the terms of the limited partnership agreement, reporting foreign exchange transactions, filing for tax refunds and preparing documents necessary to invest in funds registered abroad.
Candidates will be shortlisted on criteria such as the number of professionals, track records and proposed management fees. Interviews and due diligence will follow.
Korea Post’s savings unit had 81.3 trillion won ($73.4 billion) in assets under management at the end of September 2020, with 5.44 trillion won or 6.7% allocated to alternative assets. The proportion represented an increase from 4.6% in 2015. (Reporting by Hee-yeon Han)