Private Equity News & Analysis

Korea Post seeks overseas PE firms for $200m co-investment

Applicants must make a minimum 1% GP commitment of the total fund size.

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Korea Post, the national postal service agency in South Korea, has issued a call for proposals from overseas private equity managers.

It plans to commit a total of $200 million in two separate mandates to fund managers as part of its global co-investment strategy, according to a statement. Hedge fund and real estate managers are excluded from submitting proposals.

Korea Post requires that the qualified offshore manager must have experience in managing commingled fund products or separately managed accounts for its investors. Applicants should also commit a minimum of 1 percent of LPs’ total committed capital to the funds.

Other selection criteria include:

  • Preferred return: IRR of 7 percent and above
  • Performance fee: maximum 15 percent of performance over the preferred return (catch-up allowed)
  • Leverage: Less than 50 percent (fund level leverage, credit facility will be included)
  • Management fee: Maximum 100bp of total committed capital

The mandates are open for applications until 16 March.

Korea Post manages close to 120 trillion won ($112 billion; €90 billion) of assets, of which approximately 6.6 percent is invested in alternatives, according to PEI data. It has backed funds managed by Guggenheim Partners, Partners Group, IMM Private Equity and STIC Investments.