NPS commits $724 mn to CVC Capital’s ninth PE fund

South Korea’s National Pension Service (NPS), the world’s third-largest pension fund, has committed €‎650 million ($724 million) to European private equity giant CVC Capital Partners’ €‎26 billion fund, sources familiar with the matter said on Thursday.   

NPS and other Korean institutional investors, including the Korean Teachers’ Credit Union (KTCU), Samsung Life Insurance Co. and Samsung Fire & Marine Insurance Co., have joined CVC Capital Partners IX which announced the final close on July 20 exceeding its target €‎25 billion. The fund targets private equities in Europe and the Americas.

KTCU has committed €50 million to the fund, and the two insurers of Samsung Group are understood to have respectively pledged €50 million-€100 million investment, sources said.

NPS and KTCU have both invested in the Luxembourg-based private asset managers’ previous funds.

NPS, managing 975.6 trillion won ($763.7 billion) in assets as of end-April this year, invested $75 million in the predecessor, CVC Capital Partners VIII which was closed at €21.3 billion in 2020. The pension fund has also participated in the fourth, sixth and seventh funds as a limited partner.

KTCU, managing 43.2 trillion won in assets as of end-2022, injected around $100 million in the eighth fund.

Despite its global reputation, CVC Capital hasn’t been highly recognized in Korea. It acquired fast food giant KFC’s Korean affiliate for 100 billion won from local conglomerate Doosan Group in 2014 and sold it to Korea’s KG Group for half its purchase price in three years.

CVC Capital also bought hotel reservation app operator GC Company, better known by its Korean name Yeogi Eotta, for 300 billion won in 2019. The app operator’s value has not increased as high as CVC’s target, industry sources say.

The European investment firm operates 25 offices worldwide and manages €140 billion in assets, comprised of €90 billion in private equity, €38 billion in credit and €12 billion in secondaries.

Write to Jun-Ho Cha at chacha@hankyung.com

Jihyun Kim edited this article.