The Construction Workers Mutual Aid Association (CWMA) plans to commit $25 million to a global infrastructure blind-pool fund investing in senior or mezzanine debts with an investment period of about 10 years.
The South Korean savings fund has recently issued a request for proposal for the mandate, according to investment banking sources on Nov. 19.
It will receive applications by Nov. 29 and finalize the selection around February next year.
A qualified manager needs to manage at least $300 million in infrastructure assets with fund managers having at least five years of experience in infrastructure investing on average.
An additional key requirement is that the management companies and their representative fund managers must not have a history of breaching laws over the past three years.
Alternatives make up 19.4% of the CWMA’s 3.7 trillion won ($3.1 billion) in assets as of the end of 2018.
Last year it reported its worst annual return of 0.27% since 2008, weighed down by a double-digit negative return from equity portfolio.
By Hyun-il Lee
<Edited by Yeonhee Kim>