POBA hikes target allocation to alternatives

The South Korean pension boosted its target exposure to alternatives in 2021.

Institution: Public Officials Benefit Association
Headquarters: Seoul, South Korea
AUM: 16.36 trillion won
Allocation to alternatives: 58.1%

Public Officials Benefit Association has increased its target allocation to alternatives from 58.1 percent to 63.1 percent as of 31 December 2020, a contact at the pension told Private Equity International.

POBA’s target alternatives portfolio is broken out into 53 percent private real estate, 25 percent private equity, 16 percent infrastructure and 6 percent to private debt and other alternatives.

POBA’s target allocations to its fixed income and public equities will decrease as a result of increasing its exposure to alternatives.

As illustrated below, POBA’s recent private equity commitments have focused on buyouts and mezzanine/debt strategies across various regions.

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