POBA to up co-investment with CalSTRS, Texas pension fund

The Public Officials Benefit Association (POBA) will double co-investment with the California State Teachers’ Retirement System (CalSTRS) to 880 billion won ($760 million), and it is also in discussion with the Teacher Retirement System of Texas (TRS) to increase co-investment, a POBA source said on April 29.

In 2018, the $11 billion pension scheme for South Korea’s local government employees, launched $400 million joint ventures with CalSTRS and TRS respectively to invest in US real estate debts.

POBA had committed $200 million to each JV.

PCCP LLC, a Los Angeles-based real estate investment firm, manages debt investments for the POBA-CalSTRS JV which focused on senior loans and multi-family and retail assets.

On May 2, POBA will sign a preliminary agreement with CalSTRS to boost co-investment and mutual cooperation which include doubling their co-investment to 880 billion won, POBA said in a statement on April 26.

“We are also in discussion with the Texas pension fund to increase co-investment. No agreement has been reached yet on details,” a POBA source told the Korean Investors.

POBA has entrusted 1.2 trillion won to US investment funds, including $400 million commitments to CalSTRS and TRS.

US investments account for 55% of POBA’s 5-trillion-won global portfolio which makes up 41% of its total assets under management.

By Hyunil Lee

hiuneal@hankyung.com