POBA seeks a global infrastructure manager

The South Korean public pension fund issues a RFP for an infrastructure focused SMA mandate.

Institution: Public Officials Benefit Association
Headquarters: Seoul, South Korea
AUM: 16.36 trillion Korean Won
Allocation to alternatives: 58.1%

Public Officials Benefit Association has issued a request for proposal for a global infrastructure fund manager.

The pension aims to commit $300 million to a manager with diversified strategies and sectors, in which $200 million will be invested in co-investment vehicle and $100 million will be on primary investment. The capital will primarily be invested in developed markets including North America, Western Europe and Australia.

Successful firms should have managed private infrastructure separately managed accounts with at least $500 million in total for the past five years, in which the total capital raised for SMAs accounting for at least 70 percent of the total infrastructure AUM. The investment aims for a net IRR of 6 to 8 percent.

The submission deadline is 21 May with a decision put forth to the investment committee late June.

As illustrated below, the 16.36 trillion Korean won ($14.5 billion; €11.9 billion) South Korean pension fund has a 10.4 percent target allocation to infrastructure that currently stands at 9.3 percent.

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