The Pension Foundation of the General Assembly of the Presbyterian Church of Korea (PCK) has received 19 proposals for its alternative investments portfolio. The pension fund will invest total 40 billion won, which is relatively small, but many PE firms seeking for additional capital to close their funds have flocked to the competition.
The Pension Foundation of the General Assembly of the PCK, with around 500 billion won of assets under management, has received total 19 proposals which were due on March 20, sources close to the matter said. The pension fund plans to shortlist two to three times the number of available spots based on quantitative criteria.
The shortlisted candidates will be revealed later this month, followed by presentation competition which will take place on April 7. The final results are expected to be announced before the end of April.
The pension fund’s alternative investments portfolio includes private equity and private debt in domestic and global markets, infrastructure assets and overseas real estate assets. The pension fund will decide how many external managers it will choose during the selection process.
The pension fund’s return objective is between six and ten percent. The life of each fund cannot exceed ten years with the investment period no longer than five years from the establishment. A target size of the fund needs to be more than 100 billion won with capital commitments worth more than 30 percent of it secured.
The pension fund, which used to focus on equities, has gradually increased its allocation to alternative assets with an aim of enhancing investment returns, emerging as one of the major investors in the alternative investment space. It committed total 90 billion won to alternative funds last year, and, among PE firms, Keistone Partners and IMM Investment each received 10 billion won in commitments. (By Kim Hye-ran)