Blackstone, Pomona win mandates for Korea GEPS’ $100 mn investment

  • 2016-06-23

South Korea’s Government Employees Pension Service (GEPS) has awarded $50 million mandates each to Blackstone and Pomona Capital for global secondary private equity strategy, investment banking sources said on June 23.

Pomona Capital scored the highest among 14 participants in the bidding in various evaluation items, including fund management staff and investment strategy. The U.S.-based private equity firm is in the process of raising a $2 billion fund that it is aiming to close at the end of this year.

It was the second mandate that Pomona has received since 2014 from the South Korean pension fund. In March 2014, GEPS committed $30 million to Pomona, and the expected returns on the investment are above 30% a year. A GEPS source said the investment has already started to yield steady returns through dividends.

Blackstone has recently closed a secondary fund raising worth $6 billion, but participated in the bidding to sustain relationships with the GEPS, according to the sources.

“Now the Blackstone fund was closed, we expect investment execution and redemption will be fast,” said an unnamed GEPS source.

By Dong-hun Lee

Leedh@hankyung.com

<Edited by Yeonhee Kim>