KTCU awards $412 mil in private equity mandates Korea’s pension fund selects eight managers

Translated by Ryu Ho-joung 공개 2021-07-22 07:46:45

이 기사는 2021년 07월 22일 07:44 더벨 유료페이지에 표출된 기사입니다.

Korean Teachers' Credit Union (KTCU), the pension fund for public school teachers and employees, has awarded private equity mandates totaling 475 billion won ($411.8 million) to eight managers, most of which have a proven track record in specific sectors or strategies.

KCTU awarded 400 billion won to E&F Private Equity, Ium Private Equity, Keistone Partners, Crescendo Equity Partners and Premier Partners, which were selected from the mid-cap league, according to the pension fund’s announcement on Tuesday. Three smaller managers from the rookie league – Seven Bridge Private Equity, Well to Sea Investment and J& Private Equity – received the remaining 75 billion won.

Four of the five mid-cap managers selected by KTCU are those that secured commitments from the state-controlled National Pension Service. In late June, NPS awarded a total of 600 billion won worth of PE mandates to E&F Private Equity, Ium Private Equity, Keistone Partners and Crescendo Equity Partners.

These four PE managers have in common that they are all focused on specific sectors or strategies.

Keistone Partners has a strong track record in distressed and special situations investing. Its notable investments include Kumho Buslines, Seoul Express Bus Terminal and Daewoo Engineering & Construction. It is broadening its investment focus as the firm’s size grows. At the same time, the firm continues to strengthen its track record in restructuring companies, with KAL Limousine and Orion Technology among its recent investments.

Crescendo Equity Partners is a PE firm focused on investments in technology companies. It is also well known for being backed by PayPal founder and venture capitalist Peter Thiel. The firm, led by founding partner Kevin Lee, invested in software company Hancom WITH and wireless equipment maker Seojin System this year.

E&F Private Equity focuses on buyouts of companies in environmental sectors. This investment focus particularly increases the firm’s attractiveness to domestic limited partners as environmental, social, and governance investing is gaining momentum in the country. Its notable investments include bathroom products maker Inus and waste management companies Korea Environment Technology, Saehan Environment and Environment & Energy Solution.

Ium Private Equity has a strong track record in mezzanine investing and investments in smaller companies with dominant market positions. Its notable portfolio companies include stem cell company Bio Solution, Hyundai Elevator, Taewoong Logistics and ice supplier Iceolly.

Premier Partners was not included in the four managers selected by NPS last month, but it secured a 150 billion won capital commitment from the state pension fund earlier this year. The firm is in the process of raising its third flagship fund, which reportedly already raised roughly 30% of an 800 billion won fundraising target.

Premier Partners invested in 3D dental scanner maker Medit, payments company Toss Payments and game developer Supergene by using its second fund. The exit from its one-and-a-half year investment in Medit generated a return of 1.5 times invested capital. Last year, the firm invested 300 billion won in SK IE Technology, a lithium-ion battery separator manufacturer that went public on Kospi in May. (Reporting by Hee-yeon Han)
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