The Public Officials Benefit Association (POBA) has picked seven global private equity fund houses to invest $300 million in five different strategies, according to investment banking sources on May 18.
Details are as follows:
– Private debt ($50 million each): Ares Management L.P. & London-based Alcentra
– Buyouts ($40 million each): Apollo Global Management & Sweden-based EQT Partners
– Co-investments ($40 million): HarbourVest Partners
– Funds of funds ($40 million): Neuberger Berman
– Secondaries ($40 million): Goldman Sachs
The committed capital to blind-pool fund managers is larger than last year’s $200 million entrusted to five foreign private equity fund managers.
POBA, a savings fund for South Korea’s local government officials, began the screening process for the mandates last March.
It followed its commitment of $120 million to five private debt fund managers, including Alcentra which announced the final close of its second European direct lending fund for €4.3billion in March.
Both Ares Management and Alcentra, which secured the private debt mandates for $50 million respectively, also received €30 million each in 2015 from South Korea’s Government Employees Pension Service for senior debt investments in Europe.
By Donghun Lee and Daehun Kim
<Edited by Yeonhee Kim>