The Korean Federation of Community Credit Cooperatives (KFCC) has announced plans to restructure its investment management team as the fund’s alternative investments increase at a rapid pace.
The 70 trillion won ($63.3 billion) fund recently elevated its real estate investment unit – which used to be one of the sub-divisions of the alternative investment division – to division level, according to sources.
Its corporate financing unit, which manages investments in private equity and venture capital, was divided into two groups, with more staff expected to be added.
The changes came as the fund continued to boost alternative investments, a process it has been pursuing since last year. KFCC had been prevented from investing in alternative assets through blind-pool funds since 2012 by the Ministry of the Interior and Safety, which oversees the organization, after recording huge losses from its investment in real estate funds due to the 2009 global financial crisis.
The ministry removed the embargo at the end of 2019, and KFCC invested a total of 480 billion won in alternative investments over the last year, with 300 billion won put into blind-pool funds. Its real estate portfolio exceeded 10 trillion won.
The fund said in December 2019 that it would invest 7 trillion won in alternative assets by 2022, which will increase its exposure to the asset classes, including private equity, venture capital and real estate, to more than 32% of total assets. (Reporting by Se-hun Jo)