Shinhan Alternative Investment Management (SAIM) has been removed from the South Korean National Pension Service (NPS)’s list of external alternative managers after the firm liquidated its 2008 vintage fund.
Eighty external managers were managing NPS’ domestic corporate private equity assets at the end of March, no change from three months earlier, according to the list released by the pension fund. SAIM was left off the list while KL & Partners was added.
NPS committed 200 billion won ($164 million) to the Shinhan Private Equity Fund II launched in 2008 by SAIM, formerly known as Shinhan Private Equity. The 460 billion-won fund, which counted Korea Post and affiliates of Shinhan Financial Group among its limited partners, invested in domestic companies including construction equipment provider Everdigm and pulp company Jeonju Paper.
The life of the PE fund had been extended several times as the exit from Jeonju Paper kept being delayed. The fund had held a 42 percent stake in Jeonju Paper for more than 10 years since 2008 when a consortium of SAIM and Morgan Stanley’s private equity arm bought 100 percent of the company.
Objecting to a further extension, limited partners of the fund requested the general partner to repurchase their stake as specified in the fund’s operating agreement. SAIM accepted the request and created a new fund which bought their entire remaining stake at an agreed price.
SAIM is trying to transform itself into a real assets manager with a reduced focus on investment in corporate private equity. The firm is currently managing some of the NPS’ infrastructure assets.
KL & Partners, which was newly added to the list of NPS’ external managers, counted the pension fund among investors in its fund launched recently to acquire Haimarrow Food Service, the operator of fast-food chain Mom’s Touch. (Reporting by Hee-yeon Han)