Korean Federation of Community Credit Cooperatives (KFCC) has shortlisted a number of companies to manage private equity mandates worth a combined 300 billion won ($261 million), industry sources said on October 8.
Four or five managers, including IMM Investment, Glenwood Private Equity and JKL Partners, have advanced to the next phase in the competition for A-type funds, which are larger than 500 billion won.
A consortium of Korea Investment Private Equity and SG Private Equity, EUM Private Equity, Wonik Investment Partners and two to three other candidates are in the running for B-type funds, larger than 200 billion won but smaller than 500 billion won.
KFCC will select three managers in each of the two categories, with managers of A-type funds being allocated 200 billion won and B-type funds 100 billion won. Interviews and due diligence of the shortlisted candidates will then be conducted, with final results expected as early as the end of this month.
The federation resumed its investment in blind-pool funds this year in search of higher returns. It had been restrained from investing in alternative assets for eight years by the Ministry of the Interior and Safety, which oversees the organization, after recording huge losses from its investment in real estate funds about a decade ago due to the global financial crisis.
KFCC has more than 70 trillion won of assets under management. It announced in December that a total of 7 trillion won would be allocated to alternative assets over the next three years.
The organization awarded private equity mandates worth 180 billion won in the first half of this year to 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)