The Public Officials Benefit Association (POBA) plans to commit around $150 million to global blind-pool private equity funds to invest in buyout/growth, secondary and income strategies.
For the income strategy, POBA specified that it would focus on junior and mezzanine tranches for a target dividend yield of 5% per year, or a net internal rate of return of over 10%, according to its announcement on July 18.
It rules out senior loan, real estate and infrastructure investments for the mandates. POBA_RFP_July-18-2019_Korean.xlsx.
The $11 billion retirement fund added that it would prefer a global investment firm with an office in South Korea and selected fund houses needed to achieve at least 60% of their fundraising target within one year, as it stated in last year’s RFP.
<Edited by Yeonhee Kim>