Korea’s NPS commits another $18bn to PE, debt

National Pension Service of Korea‘s total private equity and debt commitments increased by more than 38 percent last year, according to its latest annual report.

The institution, which had 948.7 trillion won ($728.8 billion; €708.1 billion) of assets under management as of 31 December, had committed 84.6 trillion won to private equity and private debt by year-end, up from 61.2 trillion won a year prior, per a Wednesday disclosure.

The increase was driven in large part by an additional 4 trillion won, or about $3 billion, of commitments to buyout funds in 2021, bringing its total in this strategy to 16.4 trillion won. Its total commitments to private debt funds also more than trebled to 1.95 trillion won, from 350 billion won at the end of 2020.

NPS backed 55 private equity funds and projects last year, bringing its total number of these vehicles in its portfolio to 404 as of December.

This marks only the second year NPS has disclosed investment details as part of a wider bid to improve transparency. In its first annual disclosure last August, NPS shared – in Korean – a wealth of information, including the strategic breakdown of its private equity portfolio and largest fund exposures, as of December 2020.

Here are some key data points to know about its enormous portfolio:

– Chin Yuen contributed to this report.