Yellow Umbrella has completed this year’s annual private equity (PE) allocation after selecting a further six managers, drawing positive feedback from market insiders.
The mutual aid association under the Korea Federation of Small and Medium Businesses announced on December 1 that Glenwood Private Equity (Glenwood PE) and a consortium of Hana Financial Investment and EverBest Partners had been awarded the two mandates in a new category for managers that haven’t worked with the organization before.
Macquarie Korea Asset Management, STIC Investment, Wonik Investment Partners and IMM Investment were chosen as PE managers for Yellow Umbrella’s regular category.
It is the first year Yellow Umbrella has held two selection processes for PE managers. A fund hard cap was set at 200 billion won for the tender process in the first half, and a maximum fund size was expected to be raised in the second selection process.
Instead, Yellow Umbrella created a new category for the second competition for managers it hasn’t worked with before in what was seen as an effort to broaden the managers roster. Managers that qualify for the new category can also apply for the regular category.
“Yellow Umbrella has thought deeply to award mandates to as many PE firms as possible,” a source said. “Its new category created in the second half was particularly a fresh idea.”
Some market insiders pointed out that the announcement of PE managers had been delayed for a month. Yellow Umbrella received the proposals for PE managers on August 13 and was originally expected to issue letters of commitment during October, but the final results were much delayed, making many PE firms anxious.
It was also noted that the new category may have to be divided into fund sizes for future tenders because Glenwood PE, one of the two managers chosen in the new category, already has a solid track record and was also chosen by the National Pension Service of Korea earlier this year. (Reporting by Byung-yoon Kim)