CLSA launches Korea fund

The $295m vehicle is part of the National Pension Service's overseas investment programme

CLSA Capital Partners has launched a new private equity vehicle to focus on the Korean market, targeting KRW 300 billion ($295 million; €217 million), according to statement. The fund will be co-managed by Korea-based Calix Investment Company.

The fund, the Hong Kong firm’s first in Korea, has been formed in partnership with Korean tire conglomerates Nexen Corporation and Nexen Tire Corporation and has received cornerstone backing from Korea’s National Pension Service, one of Korea’s largest private equity investors with over $400 billion in assets under management.

The vehicle is part of the NPS’s Corporate Partnership Programme, an initiative assisting Korean companies expand internationally. The Nexen Global Fund’s investment mandate will focus on overseas investments related to Nexen’s core tire business and automotive supplies to help further expand the company’s international presence.

Korea’s LPs have been increasingly looking abroad for private equity investment, although many have do not have the in-house capabilities to select the right private equity managers. 

NPS and Korea Investment Corporation have been exceptions in being typically active overseas, however, others are now following suit.

“Inside Korea, the value of our assets is depleting,” Min Ho Park, chief investment officer at the $8.8 billion Korea Teachers’ Pension Fund (KTPF), said earlier. “We have to expand our investments overseas.”

CLSA Capital Partners has approximately $2.6 billion under management and offices across the region, including Hong Kong, Singapore and Tokyo.

Its other funds include ARIA Investment Partners, a pan-Asian private equity fund providing growth and expansion capital to Asian mid-market companies, Fudo Capital, a pan-Asian real estate investment fund, Sunrise Capital, a Japan dedicated private equity fund and Clean Resources Asia Growth Fund, a pan-Asian clean resources growth capital fund.