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Korea’s GEPS opens tender for US$105 million infrastructure fund mandate

GEPS
By Hui Ching-hoo   
April 23, 2021

South Korea’s Government Employees Pension Service (GEPS) is looking for three international managers for a US$105 million global infrastructure mandate focusing on the North American energy sector.

The mandate is structured as a commingled close-ended equity fund with a seven-year investment period and a 7%-10% target internal rate of return, GEPS says in a request for proposal published on the website of Korea Financial Investment Association on April 21.

The fund will adopt a core and core plus investment strategy – investing in lower risk assets with stable income flows – and focus on traditional energy sectors in North America.

Applicants must have a minimum two-year track record and at least $5 billion of total infrastructure assets. They must also have at least three investment professionals with over a decade of experience in infrastructure investments.

Applications are open until May 3. GEPS will select the winning bidders by the end of May, with each given $35 million.

The Korean Economic Daily reported on February 21 that GEPS plans to launch three global infrastructure mandates this year with $135 million combined funding as part of a move to raise its allocation to alternatives to 29% of total assets from an average 20% in the past few years.

Spokespersons for GEPS did not immediately respond to questions from Asia Asset Management on the reported plans.

GEPS, a pension fund for government employees, had 8.2 trillion won ($73.8 billion) of total assets in 2020.