[Editor’s Note] Korea funds warm up to private debts

  • 2016-07-06

Private debt products such as senior secured loans, collateralized loan obligation and mezzanine debt in the U.S. and European markets have become one of favorite asset classes of Korean institutional investors who seek mid-risk mid-return investment vehicles in a low interest rate environment.

Request for proposal from the Police Mutual Aid Association (PMAA) for private debt fund (PDF) managers is the latest example. The savings fund will commit $20 million to each of two domestic or foreign firms of private debt fund management.

Government Employees Pension Service (GEPS) will also allocate as much as $375 million in fresh alternative investments this year such as global mezzanine fund, private debt along with overseas real estate and secondary private equity funds, its CIO, Mr. Young-gwon Choi, told the Korea Economic TV.

This week Korea Investment Corporation (KIC) has completed the reshuffle of its senior officials, about half a year after the sovereign wealth fund’s new CEO, Mr. Sung-soo Eun, took office last January. There was also a key person move in Korea Post. The postal service agency that manages 110 trillion won ($95 billion) named the new head of its insurance asset investments.

Enjoy the intelligences,

Chang Jae Yoo

Editor, the Korean Investors