이 기사는 2019년 10월 18일 08시00분 thebell에 표출된 기사입니다

A 1.2 trillion won blind fund that South Korea's SK Group and the Korean Teachers' Credit Union (KTCU) jointly created is likely to come to fruition. SK Holdings and KTCU have decided to invest in a U.S.-based gathering & processing (G&P) company.

According to industry sources on October 15, SK Holdings, the holding company of SK Group, and KTCU have decided to invest in U.S.-based G&P company, Brazos Midstream. It is said that the transaction price hasn't decided yet and the investment committee of each company has approved the investment plan.

KTCU will invest in private equity firm, IMM Investment and hire the firm as a general partner (GP). The co-investment will be made by SK Holdings and a private equity fund that IMM Investment sets up. The joint fund will collect funds whenever the need arises (capital call).

Last month, SK Holding and KTCU signed a memorandum of understanding (MOU) for setting up a joint fund to make cross-border investments. Under the agreement, both institutions will make co-investments for a total of 1 billion dollar (1.2 trillion won) and the two will put up 500 million dollar (600 billion won) each for the fund. SK Holdings will hunt high-growth businesses to invest in. The fund has four-year investment period with eight-year maturities.

SK Group has been active in cross-border mergers and acquisitions (M&A) to enhance its liquefied natural gas (LNG) value chain, including upstream (exploration and production), midstream (transportation and vaporizations), and downstream (distribution). SK Holdings already put 270 billion won in Brazos Midstream last year. In 2017, SK Holdings invested 117.2 billion won in another U.S.-based midstream company, Eureka Midstream and 170 billion won in U.S.-based G&P company, Blue Racer earlier this year.

Market watchers view that KTCU also agreed it is adequate to invest in G&P companies which have both business stability and profitability.

Meanwhile, KTCU has been actively seeking out high-growth businesses abroad in order to achieve high returns. KTCU announced its plan to increase the allocation to its overseas investment to 50 percent in the longer-term, from current 42 percent.

(By reporter Kim Hye-ran)