Korea Post’s insurance bureau just announced it is requesting proposals from overseas fund managers with regard to single private-equity funds with a distressed-asset strategy.
The $75 billion institution says it seeks exposure to US and/or European distressed corporate investments. It clarifies it is not looking for hedge funds that trade distressed assets.
It wants offshore private-equity fund managers that are registered overseas, and needs assurance that they manage their funds in compliance with relevant laws and regulations.
Korea Post requires that foreign managers who are interested in this mandate must partner with a local securities firm to go through the process, from filing a proposal through to funding the mandate.
All inquiries and submission will be made via the local partner, in both English and Korean languages, through email to Korea Post Postal Insurance Bureau ([email protected]), according to the organisation, and it wants to receive pitches no later than May 17. It intends to create a short list and notify candidates if they’re on it by May 31.
Korea Post says it will host onsite presentations from June 1 to June 15, and its investment committee will make a final decision by the end of June.
The size of the mandate will be W100 billion (about $93 million), and it is subject to change.
Korea Post has two financial service bureaus: the postal savings and the postal insurance bureau, both under the management of the Ministry of Knowledge Economy. Postal savings manages around $47 billion and insurance $28 billion.
Korea Post expects to invest into commingled products. A source at the organisation says it is likely to appoint two to three managers for this mandate. Another source at Korea Post says that it would welcome many overseas managers to apply for this mandate.
As a sole adviser on overseas alternative investments to the postal insurance bureau, Hana Daetoo Securities (based in Seoul) will assist Korea Post on this task, and will not partner with overseas managers for the purpose of the mandate.