News & Analysis

Korea Post Savings seeks secondaries fund managers

The South Korean government agency wants to commit up to $200m to secondaries funds this year.

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Institution: Korea Post
Headquarters: Sejong-si, South Korea
AUM: $105.36bn
Allocation to alternatives: 5.0%

Korea Post Savings, the investment unit of Korea Post, has issued a request for proposal to overseas secondaries fund managers. It aims to commit a total of $200 million to two managers with closed-end, commingled secondaries funds.

The successful firms will have funds of at least $1 billion in size, with a hurdle rate of 8 percent or above and carry of less than 20 percent. The LP is targeting private equity secondaries funds only.

The chosen firms will already have an agreement with a local fund distributor. They must also include pre-crisis vintages in their performance records.

The submission deadline is 12 April with a decision being put before the investment committee in June.

As illustrated in the charts below, the $105.36 billion South Korean government agency currently has a five percent allocation to alternative investments.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments. Rod James contributed to this report.