NPS to up strategic partnerships with global institutions

The National Pension Service (NPS) will increase strategic investments with leading global institutional investors to boost overseas alternative investments, its chief executive Kim Yong-jin said on Wednesday.

"Due to the COVID-19 pandemic, we faced physical constraints on deal sourcing and due diligence, but we cannot help but increase overseas alternative investments," Kim said in a keynote speech at ASK 2021.

Earlier this year, NPS signed a strategic partnership with BC Partners, which specializes in buyout strategies with $40 billion AUM.

"Competition is heating up for prime overseas assets because of abundant market liquidity. NPS will further diversify portfolio into growth sectors," Kim said. To do so, NPS will increase overseas staffing as well.

The National Pension Service has gained exposure to timberland and the European mid-market tech sector in the first quarter of this year, adding two British investment firms -- Apax Partners and Stafford Capital Partners -- as its new outside managers, according to its recent public disclosure.

In a panel session of limited partners during the conference, NPS' head of private equity and venture capital Choe Hyung Don said the pension fund is interested in high-growth sectors such as the hydrogen and electric vehicle battery businesses.

NPS manages 920 trillion won ($784 billion), of which alternatives account for 11%.

Write to Jae-fu Kim, Ji-hye Min and Jong-woo Kim at hu@hankyung.com
Yeonhee Kim edited this article.