Five minutes with POBA

Dong Hun Jang, chief investment officer at the South Korea pension fund, answers our quick-fire LP quiz.

What issues keep you awake at night?

Because of the high valuations, can we accomplish our expected target return?

What surprised you most in 2017?

Can the huge amounts of dry powder be deployed successfully?

What’s the biggest challenge this year?

The RFP process is getting more competitive as too many GPs are participating.

What are the most promising regions and strategies, and why?

European mezzanine and debt strategy. There’s a higher Sharpe ratio because of tougher bank regulation.

What’s your one piece of advice for GPs?

The hurdle rate is too low. There needs to be more co-investment opportunities.

South Korea’s Public Officials Benefit Association manages around 10.1 trillion won ($9 billion; €8 billion) of government workers’ pensions, and allocates almost half of its portfolio to alternative assets. POBA currently has a 12 percent exposure to domestic and overseas private equity investments.