South Korean National Pension Service (NPS) added KKR, Madison Capital Funding and Scape Australia Management to the list of foreign asset managers for its alternative assets in the third quarter, industry sources said on Thursday (November 26).
KKR and Scape Australia Management will manage the pension fund’s foreign real estate assets. It means KKR will be managing all three types of NPS alternative assets, as it has already been managing the fund’s private equity and foreign infrastructure assets.
NPS recently decided to join AXA General Insurance, Allianz and APG, the largest pension provider in the Netherlands, as the anchor investors in the A$3.3 billion (US$2.4 billion) Australian infrastructure fund created by student accommodation provider Scape Australia.
Meanwhile, Madison Capital Funding has been appointed to the list of external managers for foreign private equity assets. Founded in 2001, the company is supporting middle market private equity sponsors, with $11.5 billion in assets under management.
NPS has been actively seeking foreign investment opportunities to boost its returns by collaborating with major investors.
It has partnered with Allianz to establish a $2.3 billion fund to build a diversified core portfolio of high-quality foreign properties, and invested in Tokyo residential assets this year. The fund also joined hands with Singapore-based Keppel Capital to beef up private infrastructure investment in Asia.
In another move, NPS joined forces with Dutch APG in a partnership to invest in private assets, including infrastructure and private real estate, in Europe and Asia.
A total of 62 external managers are now handling NPS’ foreign private equity assets, while the pension fund also has 54 foreign real asset managers, 36 foreign infrastructure managers and 7 foreign hedge fund asset managers.
At a domestic level, 18 managers are overseeing the real estate assets of NPS, 13 are managing domestic infrastructure assets and 78 are managing corporate investments. (Reporting by Hee-yeon Han)