Korean Federation of Community Credit Cooperatives (KFCC) is seeking six managers for a total of 300 billion won ($253 million) worth of private equity mandates.

An announcement by KFCC on September 7 said that proposals are due at 3 p.m. Seoul time on September 18, with the process to be followed by interviews and on-site due diligence of managers. Final selections are expected before the end of October.

There are two categories – A-type and B-type – of competition where KFCC will award total 200 billion won and 100 billion won respectively to three managers each. Managers applying for the A-type competition should propose a fund larger than 500 billion won, while the fund size for the B-type competition must be 200 billion won or more but less than 500 billion won.

KFCC is expected to receive proposals from several domestic private equity firms that are raising new blind-pool funds. Those in the process of fundraising include JKL Partners, IMM Investment and Glenwood Private Equity.

KFCC resumed investment in blind-pool funds earlier this year. It had been restrained from investing in alternative assets for eight years by the Ministry of the Interior and Safety, which oversees the group, after recording huge losses from its real estate investment in early 2010s due to the global financial crisis.

KFCC plans to continue to increase its exposure to the asset class in search of high returns. It said in a press conference last December that the group would allocate total 7 trillion won to alternative assets over the next three years until 2022.

KFCC has more than 70 trillion won in assets under management. It awarded total 180 billion won worth of private equity mandates to five managers in the first half of this year. They included IMM Private Equity, SkyLake Investment, Eugene Asset Management, InterVest and a consortium of BNW Investment and Industrial Bank of Korea. (Reporting by Se-hun Jo)