Korea’s GEPS to begin investing in global buyout, growth funds

South Korea’s Government Employees Pension Service (GEPS) is set to inject 100 billion won ($74.7 million) to make its first investments in global buyout and growth funds targeting enhanced returns, according to sources familiar with the matter on Friday.

The pension fund for government workers, managing 7 trillion won in assets as of end-2022, will start receiving applications from asset management firms early next month. It will tap two to three general partners and commit $30 million-$40 million to each of their funds.

Qualifying applicants should have at least 15 years of experience in asset management and be operating global buyout or growth funds.

Some global asset management firms are in talks with GEPS.

Private equity giants such as Kohlberg Kravis Roberts & Co. (KKR), The Carlyle Group, Blackstone Inc., TPG Inc. and EQT Partners AB have shown interest in the new partnership opportunity, The Korea Economic Daily understood.

GEPS, with 2 trillion won in alternative assets, has primarily invested in global private debt funds and secondaries for steady cashflow. Aiming for high returns, it seeks to invest in pre-initial public offering equities and exit after the firms' listings.

The pension fund’s plan is garnering attention as many Korean institutional investors are turning to maximizing their current portfolios rather than executing new investments, a source said.

Write to Byeong-Hwa Ryu at hwahwa@hankyung.com

Jihyun Kim edited this article.