Korea Development Bank (KDB) has awarded 170 billion won ($153 million) of private equity mandates focusing on investment opportunities in the Association of Southeast Asian Nations (ASEAN) region to STIC Investments, Affirma Capital and a consortium of SV Investment and Shenzhen Capital Group.

STIC and Affirma Capital received 70 billion won each from the state-run lender, with the remaining 30 billion won awarded to the team of SV and the Chinese investment firm.

Based on the investment mandates, the funds run by STIC and Affirma Capital should be bigger than 300 billion won, while the consortium of SV and Shenzhen Capital should raise a fund of 100 billion won or more, including KDB’s capital commitment.

The mandates are aligned with the South Korean government’s New Southern Policy, which aims for stronger ties with ASEAN economies. Each of the funds will need to invest at least 150% of the amount committed by KDB in South Korean companies seeking to expand into the region or ASEAN firms that have a business relationship with South Korean companies.

In its evaluation, KDB placed weight on the managers’ track records in the region, industry watchers said.

South Korean-based STIC has a solid track record in Asia, having raised a $285 million fund focused on companies in China and Southeast Asia in 2018. Affirma Capital, run by former Standard Chartered bankers, also has a strong track record in South Asian and Southeast Asian countries, including India, Vietnam and Singapore. (Reporting by Hee-yeon Han)