Korean govt pension to commit $105 mn to 3 global infra funds

South Korea's Government Employees Pension Service (GEPS) will commit $105 million to three global infrastructure funds this year, targeting a net internal rate of return of 7-10%.

GEPS will select three infrastructure funds, excluding funds of funds, by May and will commit $35 million, or €35 million respectively to them, according to its request for proposals issued on Wednesday.

A qualified fund must raise a minimum $1 billion at its final close and traditional, non-renewable energy generation and power plants should not exceed 20% of the fund's portfolio. The fund also needs to invest in core or core-plus assets in developed markets. 

Management fees should not exceed 2% of the total commitment. A qualified fund house must have a minimum $5 billion of infrastructure assets under management.

GEPS will receive proposals for the mandate by May 3 at 4 p.m (Seoul local time).

In 2021, GEPS is targeting a 4.1% return on average from investments.  

Write to Sang-eun Lucia Lee at selee@hankyung.com
Yeonhee Kim edited this article.

1. GEPS 2021 Global Infrastructure RFP.pdf

2. GEPS 2021 Global Infrastructure Investment Proposal Form.pdf

3. GEPS 2021 Global Infrastructure Investment Proposal Form.xlsx