KIC lays out asset allocation changes

The sovereign wealth fund has announced future plans for its private equity exposure.

Institution: Korea Investment Corporation
Headquarters: Seoul, South Korea
AUM: $117.1 billion
Allocation to alternatives based on fair value: 14.35%

Korea Investment Corporation is aiming to increase its assets under management to $200 billion by 2025.

It is seeking to generate stable mid- to long-term profits, and continuously expand alternative investments and discover new asset classes to enhance diversification and mid- to long-term returns. The firm plans to:

  • Increase its alternative investment allocation from 18 percent in 2021 to 26 percent by 2025.
  • Enhance alternative investment capabilities and promotion of alternative direct investment to reduce fees.
  • Expand new strategies by increasing investment in strategies that are expected to grow in the mid- to long-term, such as venture investment and private placement bonds, to secure additional profit-generating opportunities.

For private equity, it will expand the proportion of investments in venture capital companies that captures technological innovation and changes in consumer preferences. It will continue to invest in the TMT sector, including AI, robots, platforms, and big data, as well as new industries.

KIC has a 5.55 percent allocation to private equity, which comprises $6.44 billion in capital.

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