South Korea’s government-owned postal agency is looking to hire managers for a 300 billion won (US$242 million) domestic senior loan fund that will provide financing to local firms for mergers and acquisitions.
Korea Post will select one or two managers for the mandate, which is open for bids until June 5.
Eligible applicants must have experience in private equity investing or collective investment business, and must be registered in accordance with domestic laws, Korea Post says in its request for proposal on May 27.
The manager or managers chosen will have to set up the fund within six months of the appointment.
The fund will offer financing or refinancing to Korean firms for mergers and acquisitions, including foreign deals. But financing for foreign investments will be limited to a maximum 30% of the fund.
Korea Post will evaluate bids in late June and make the appointment in early July.
The postal agency is at the forefront of investing in alternatives or non-mainstream assets among top Korean institutional investors.
It has launched various private debt and equity strategies in recent years to boost its alternatives portfolio, according to a fund manager in Seoul. Around 6% of Korea Post’s assets are allocated to alternatives.
“As a government organisation, Korea Post may have to take the responsibility to provide financial support for local companies, especially as commercial lenders become more cautious in new lending,” the fund manager tells Asia Asset Management, speaking on condition of anonymity.
Korea Post had around $106 billion of total assets at the end of 2019.