Korea Post Savings seeks real estate mezzanine managers

The South Korean government agency is looking to commit up to $200m to US or Europe mezzanine funds.

Institution: Korea Post
Headquarters: Sejong-si, South Korea
AUM: 133.85 trillion Korean won
Allocation to alternatives: 6.0%

Korea Post Insurance, the investment unit of Korea Post, has issued a request for proposal for real estate fund managers with a focus on mezzanine strategy.

The firm aims to commit a total of $200 million to one or two managers targeting mezzanine strategies such as mezzanine loan, B-Note and subordinated debt.

The successful firms should have at least $10 billion invested in global real estate, with five years of management experience in global real estate mezzanine funds. The fund should also have at least net internal rate of return of 6 percent.

The submission deadline is 19 August 2020 with a decision put forth to the investment committee planned between September and October.

As illustrated below, the South Korean government agency currently has committed to funds with senior debt and subordinated / mezzanine debt strategies.

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