South Korea’s National Pension Service (NPS) has wrapped up its selection of five asset managers to allocate up to 800 billion won ($665 million) worth of private equity fund (PEF) investment.
The world’s third-largest pension fund said on June 30 it had selected Glenwood PE, Macquarie Asset Management, SkyLake Investment, IMM Investment and JKL PARTNERS as domestic PEF managers in this year.
After announcing its plan to select the managers for its mandates in March, the pension plan made the decision by reviewing proposals, the NPS said. It also said that each of the funds of companies will be managed based on a five-year investment period and a 10-year maturity and the NPS will allocate up to 800 billion won.
As of the end of April 2020, the NPS has managed 12.4% of the fund’s total assets, or 89.9 trillion won, as alternative investment assets investing in private equity and real estate. It plans to expand the investment to 13.2% of the fund’s total assets and 110 trillion won by the end of 2021.
NPS chief investment officer Ahn Hyo-joon said: “We will continue to diversify the portfolio, including the expansion of alternative investment, and make more efforts to enhance the long-term stability and profitability of the fund.” (Reporting by Kyoungho Lee)