CWMAA places $70m with Park Square, Goldman Sachs

Park Square has once again received active support from South Korean institutional investors.

South Korea’s Construction Workers Mutual Aid Association (CWMAA) has selected Park Square Capital and Goldman Sachs to manage its $70 million allocation to private debt, according to a CWMAA source.

The retirement fund will allocate a maximum of $35 million each to Park Square Credit Opportunities Fund III and Goldman Sachs’ Broad Street Real Estate Credit Partners III.

This is CWMAA’s first commitment to blind-pool funds for cross-border alternative investments. To-date, CWMAA’s allocation to alternative investment accounts for only 10 percent of its overall portfolio compared to the average of 20-30 percent by other Korean institutional investors. The fund will gradually increase its allocation to alternatives this year, according to the same source cited above.

London-based credit provider Park Square Capital has received numerous commitments from South Korean institutional investors. Last year, it received a $100 million allocation from Korea Post for a separate account to invest in the North American and European private debt markets. The manager’s €500 million Park Square Credit Opportunities Fund III also received $20 million from South Korea’s Public Official Benefit Association (POBA) to invest in senior corporate debt in Europe.

Broad Street Real Estate Credit Partners III had raised $993 million by last month, according to a US Securities and Exchange Commission filing. The fund targets senior and mezzanine loans backed by North American and European real estate and the target size has not been disclosed.

The $2.8 billion CWMAA was established in 1998 to manage retirement savings for non-regular construction workers in South Korea.