Korea Post Savings published a request for proposals seeking three asset managers to handle a collateralised loan obligation portfolio.
The managers will invest in CLO debt tranches by setting up a separately managed account. According to the official statement on its website, qualified candidates are required to have at least $10 billion of AUM, with a minimum $5 billion worth of CLO AUM and $300 million worth of CLO separate accounts. The selection benchmark is either meeting the JPMorgan CLO Index or a comparable index.
The amount to be allocated to CLOs has not been revealed yet. The deadline for submissions is 1 September.
In May, the saving unit disclosed its plan to commit a total of $300 million to three direct lending funds in Europe and North America. It was also hiring two overseas fixed-income managers of US investment-grade corporate credit funds.
The need for an alternative to private equity investment has led to a growing trend for Korean investors to tap the private debt sector. A number of RFPs has been published by other Korean investors recently including Korea’s Police Mutual Aid Association (PMAA) and Government Pension Service (GEPS).
Korea Post Savings is the government-backed savings arm of the national postal service of Korea with $60 billion in assets.