Korea pension fund sets aside $34m for private debt

Korea’s state pension fund PMAA is planning to allocate 40 billion won to private debt alongside PE and VC allocations.

Korea’s Police Mutual Aid Association (PMAA), the country’s state pension fund, is looking for fund managers to manage 100 billion won ($87 million) of blind fund mandates.

According to an official announcement, PMAA will select six fund managers for two private debt funds, two private equity funds and two venture capital funds. The two private debt fund managers will receive 20 billion won each and PMAA is seeking applications from both domestic and foreign managers.

The private debt funds are required to implement a senior direct lending strategy, excluding collateralized loan obligations, bank loans and property-related direct lending. In addition, the PMAA’s commitment should account for less than 20 percent of the total fundraising amount.

For the private equity and venture capital funds, only domestic fund managers are eligible. They will receive the remaining 60 billion won with 20 billion won for each private equity fund manager and 10 billion won for each venture capital fund manager.

The deadline for the proposals is July 13 at 6pm (Korean time).

According to a local press report, PMAA currently has AUM of 2 trillion won. Its investment portfolio includes 5 percent stocks, 45 percent bonds, 30 percent real estate and 20 percent alternative investment projects. The association secured investment returns of about 4 percent last year.