The Korean Federation of Community Credit Cooperatives (KFCC) has selected private equity (PE) managers to resume investments in blind-pool funds for the first time in eight years.
The KFCC has selected PE managers to invest a combined 180 billion won ($150 million) to blind-pool funds under five categories – large-cap, mid-cap, restructuring, bio and materials and parts and equipment – according to sources on July 14. Each firm will be mandated to manage between 30 billion won and 50 billion won.
IMM PE has been selected as a manager for a large-cap fund while SkyLake Investment has been picked as a manager for a mid-cap fund. IMM PE has been raising money for its 2.2 trillion-won blind-pool fund and SkyLake is raising capital for its 500 billion-won 11th blind-pool fund.
Eugene Asset Management has been mandated to manage a restructuring fund. InterVest has been picked to manage a bio fund and a consortium of BNW Investment and Industrial Bank of Korea (IBK) will act as a manager for a materials, parts and equipment fund.
Eugene Asset Management submitted a proposal to be picked as a manager for Korea Growth Investment Corporation (K-Growth)’s 2020 corporate restructuring fund. The Export-Import Bank of Korea recently selected InterVest as a manager that will raise and manage funds for its blind-pool fund called the “Global Bio-Health K Fund.” InterVest has been raising money to launch its 250 billion-won blind-pool fund. A consortium of BNW Investment and IBK was selected as a manager by K-Growth and Korea Development Bank for a blind-pool fund for investments in the materials, parts and equipment sectors.
KFCC stopped alternative investments in 2012 at the urging of the Ministry of the Interior and Safety. However, as low interest rates have made achieving the target rate of return difficult, KFCC decided to resume investments in blind-pool funds for the first time in eight years. (Reporting by Ar-rum Rho)