Korea Post is aiming to invest up to $300 million in two to three funds focused on energy and energy infrastructure assets around the globe, as it seeks to increase its exposure to the asset class.
According to a request for proposals issued in late December, the postal and financial services company is looking for strategies that will pursue more than 70 percent of their investments in OECD countries. Korea Post’s investments will not exceed 20 percent of the final fund size.
The criteria Korea Post will consider in evaluating potential fund managers will include the cumulative AUM of a fund series, the average IRR of previous vehicles and the management experience and style of the investment team, including its decision-making process, according to the RFP.
Jinho Lee, Korea Post’s head of global alternatives investment told Infrastructure Investor the mandate is part of Korea Post´s efforts to expand its infrastructure portfolio. However, it was unclear how upstream and downstream assets, in which the company will look to invest alongside midstream assets, fit into Korea Post’s infrastructure strategy.
Lee declined to provide more details.
The latest RFP comes less than a year since Korea Post announced a $500 million global infrastructure mandate in April, as part of its strategy to expand its exposure to the asset class.
Fund managers have until 10 January to respond to the RFP with final selection expected by 20 February.
According to data from Infrastructure Investor, Korea Post´s AUM currently stands at 119.33 trillion Korean won ($105.9 billion; €92.5 billion), with its allocation to infrastructure, private equity and real estate totalling 1.5, 1.3 and 2.2 percent, respectively.
You can hear directly from Jinho Lee when he takes the stage at Seoul Summit this May. Find out more on the event website.