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Korea’s GEPS seeks mezzanine managers

Another state pension fund in the country is planning to tap the private credit space this month.

South Korea’s Government Pension Service (GEPS) is planning to commit $100 million ($50 million per fund) to two GPs operating in private debt.

According to a statement, the pension fund is looking at funds focusing on global private debt with a mezzanine or subordinated debt strategy. The fund term should to be 10 years with a five-year investment period.

GEPS expects at least 50 percent of its total committed capital to be invested in North America with less than 30 percent to be invested in equity. Its investment in each fund should also be limited to 50 percent of the aggregate commitment.

Eligible GPs should have a minimum of two full years in the business with a cumulative size of total fund invested (mezzanine and related strategy only) of at least $300 million.

The deadline for proposals is set for 15 July. GEPS will announce its final selection on 24 August.

South Korea’s state pension funds have shown a growing interest in international private debt. PDI reported last week that the Police Mutual Aid Association (PMAA) of South Korea was also looking for private debt firms. And in May, Korea Post Savings issued an RFP for US direct lending firms.