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March 2023
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March 2023
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Korea’s KBIZ seeks managers for 600 billion won property loan fund mandate

By Hui Ching-hoo   
January 30, 2023

The Korea Federation of SMEs, or KBIZ, plans to hire two asset managers for a 600 billion won (US$488.23 million) fund investing in domestic real estate loans, its first tender of 2023.

Structured as a blind fund, it will have a target return of at least 7% per annum and a seven-year maturity, including a three-year investment period, the industry group for small and medium enterprises says in a request for proposal on January 26.

The fund will be set up within six months after the managers are chosen.

Firms bidding on the tender must not have any record of regulatory misappropriation over the past five years and no misconduct on the part of their managements.

Applications are open until February 17 and the winning bidders are expected to be picked by the end of April.

Last year, KBIZ put up three mandates for public tender, including a 260 billion won private equity strategy in August. Like most Korean asset owners, the group doesn’t announce tender results publicly.

KBIZ was established in 1962 to safeguard the rights and interests of around 3.55 million small and mid-sized enterprises in South Korea.