이 기사는 2020년 01월 10일 08:00 thebell 에 표출된 기사입니다.

South Korea’s Government Employees Pension Service (GEPS) has shortlisted six candidates to select its external managers for blind-pool funds.

GEPS has announced a shortlist of six contenders to give an anchor commitment for its blind-pool funds, including SG Private Equity (PE), IMM PE, H&Q, and Keistone Partners. The pension fund received proposals in mid-December 2019, and selected six out of 11 through document review and due diligence process.

The pension fund will go through qualitative assessments in the form of presentation competition on January 20 and finalize its selection in February. Worth 120 billion won in total, GEPS will allocate 40 billion won each to three shortlisted PE firms.

South Korea’s Public Officials Benefit Association (POBA) and the Construction Workers Mutual Aid Association (CWMA) have also kicked off the selection process of fund managers. POBA announced its shortlist of candidates and soon will hold the second assessment. CWMA is expected to finalize and announce its external manager. The competition among six suitors for GEPS is likely to be fierce as the winner will have an advantage in forthcoming investment projects in the pipeline, led by Military Mutual Aid Association, Korea Federation of Construction Contractors (KFCC) and Korea Post.

Last time GEPS allocated capital to blind-pool funds was in 2017. GEPS allocated 60 billion in private equity division in 2014 and 90 billion in 2016, and committed 80 billion to two PE firms in 2017. After skipping its allocation to PE firms in 2019, the pension fund has increased the amount this time.

GEPS is planning to boost the proportion of alternatives to 22.6 percent of its asset under management by the end of 2020 and to 32 percent by the end of 2024 from the current 20 percent. The pension fund has decided not to invest in venture capital division this time.

(By reporter Kim Hye-ran)