Korea Post’s savings unit announced a plan on May 17 to invest up to $300 million in overseas private debt funds focusing on mezzanine and distressed debt financing for non-control, and will receive proposals by 6 pm, May 26 (Korean standard time).
It plans to select one to three global private debt fund managers by the end of June, which have already launched or will launch the proposed fund by the second quarter of 2017.
It will commit a maximum $100 million to each fund which should have a minimum $500 million in assets.
It targets a net internal rate of return of 8% or higher, with the investment period of up to five years from final closing of the proposed fund.
Real estate direct lending, collateralized loan obligation and distressed debt for control strategies will be excluded.
Korea Post will require selected general partners (GPs) to provide attractive co-investment opportunities to enhance performance and networks with the South Korean agency, according to the RFP.
<Edited by Yeonhee Kim>