Sahak Yeongeum to Invest 400 Billion KRW in PEF... Proposal Deadline on 23rd

Exterior view of the Naju headquarters building of the Private School Teachers' Pension.

[Asia Economy Reporter Kwangho Lee] The Private School Teachers' Pension Service has initiated the process of selecting a domestic private equity fund (PEF) blind fund entrusted management company. The total investment scale this time is 400 billion KRW. The plan is to select the top four companies based on evaluation results and commit approximately 100 billion KRW to each.

After receiving proposals by the 23rd, the final entrusted management company (GP) will be selected by the end of next month through the first quantitative evaluation, on-site inspection of the entrusted management companies, and the second qualitative evaluation (PT).

Eligibility requirements include being an institutional exclusive private collective investment vehicle (PEF) under the Capital Markets and Financial Investment Business Act and an executive officer capable of managing it, with a fund size of 500 billion KRW or more, and having secured commitments of at least 30% of the amount from institutional investors, etc.

In particular, the Private School Teachers' Pension Service plans to reflect additional points in the evaluation by conducting on-site inspections of the appropriateness of ESG (Environmental, Social, and Governance) promotion activities this year as well as last year.

Chairman Myunghyun Joo said, “Since 2020, due to the continuous impact of COVID-19, rising asset prices, and interest rate hikes caused by inflation, there is a need for continuous efforts to diversify alternative investment asset portfolios through mid- to long-term strategic asset allocation. Through the selection of capable entrusted management companies this time, we will improve fund returns and actively promote ESG-linked investment activities to fulfill the social responsibilities of pension funds.”