Korea Scientists and Engineers Mutual-Aid Association (SEMA) has selected a total of 11 managers to handle private equity (PE) and venture capital (VC) mandates in blind-pool funds worth a combined 182 billion won ($160 billion).
Glenwood PE, Macquarie Korea Asset Management, SkyLake Investment and IMM Investment will share a PE pool worth a total of 100 billion won, with each likely to receive mandates of 20-30 billion won.
DSC Investment, Stonebridge Ventures, SBI Investment, Atinum and KTB Network have been selected as VC managers for the regular league, and We Ventures and PNP Investment in the rookie league. SEMA will allocate a combined 70 billion won to the regular league managers and a combined 12 billion won for the rookie league mandates.
Last year, SEMA awarded PE mandates to Praxis Capital Partners, SG PE and a consortium of Daishin Securities and SKS PE.
The mutual aid assocition has 6.66 trillion won in assets under management, with its exposure to alternative assets standing at approximately 36% of total assets.
It is the first time SEMA has awarded any PE mandates to Glenwood PE and Macquarie Korea Asset Management.
Macquarie Korea Asset Management has created three blind-pool funds since it launched its first blind-pool fund MKOF1 in the South Korean market in 2005.
SEMA invested in the Macquarie European Infrastructure Fund created by Macquarie Group, but has never been an investor in Macquarie Korea Asset Management’s MKOF blind-pool fund series. Macquarie Korea Asset Management’s fifth MKOF, worth more than 700 billion won, will have SEMA as its limited partner for the first time.
Glenwood PE is currently raising 800 billion won for a second blind-pool fund. In 2014, SEMA participated in Glenwood PE’s project fund, created in a bid to acquire a 100% stake in SK Magic, formerly Tongyang Magic. The project fund generated an internal rate of return of 35% as the company was sold to SK Networks, and SEMA also pocketed a handsome return through the investment.
SEMA’s decision to award mandates to Macquarie Korea Asset Management and Glenwood PE will help those firms to speed up their fundraising efforts, with both now securing more than 60% of their targets.
The mutal aid group has previously invested in IMM Investment’s blind-pool fund, while SkyLake Investment also received a mandate from SEMA in its 10th blind-pool fund. (Reporting by Ik-hwan Choi and Hye-ran Kim)