General Assembly Pension Foundation, which manages clergy retirement funds, to invest 50 billion won in alternatives [fn Market Watch]

[Financial News] The General Assembly Pension Foundation of the Presbyterian Church of Korea, which manages clergy retirement funds, is embarking on 50 billion won in alternative investments. This follows its commitment of 50 billion won this year to BNW Investment, IMM Investment and LB Investment. Including this allocation, the foundation’s alternative investments this year will total 100 billion won.
According to investment banking (IB) industry sources on the 19th, the General Assembly Pension Foundation’s board recently met to discuss the process, schedule and investment size for the second round of selecting alternative investment managers. The foundation plans to complete a second allocation of 50 billion won in the second half of the year.
That day, the board raised the cap for project-based infrastructure investments from 5 billion won to 10 billion won. In the first call for applications, no managers were ultimately selected in the infrastructure or private debt (PD) categories. IB industry sources therefore see the higher cap as making it more likely that an infrastructure manager will be selected in the second allocation.
Thirteen firms applied for the first allocation. After a quantitative evaluation, the foundation shortlisted six firms—two private equity firms and four venture capital firms (VCs)—and selected three managers through qualitative evaluations (presentations). The allocations were 10 billion won for BNW Investment, 20 billion won for IMM Investment and 20 billion won for LB Investment.
BNW Investment, selected in the PEF category, is raising its fourth blind fund with a target of up to 800 billion won. It has received commitments from the Export-Import Bank of Korea, Korea Post and the Korea Military Mutual Aid Association, among others, and secured 60 billion won in the Industrial Accident Compensation Insurance Fund’s investment program. It plans to grow the fund through multiple closings by the end of the year.
IMM Investment and LB Investment, selected in the VC category, both proposed secondary funds. IMM Investment is stepping up efforts to raise its seventh secondary fund after securing 45 billion won from the Korea Development Bank, 20 billion won from the Fund of Funds and 20 billion won from the Korea Teachers’ Pension. In 2024, it raised its sixth fund, worth 120 billion won. LB Investment plans to use a 45 billion won commitment from the Korea Development Bank as an anchor and add commitments from the Korea Teachers’ Pension and the General Assembly Pension Foundation to raise a secondary fund of up to 200 billion won. It is targeting an early-next-year close.
As of its September closing, the General Assembly Pension Foundation manages total assets of 811.7 billion won, including 757.5 billion won in assets under management. Its target annual return is around 8%. It requires blind fund managers to have at least 300 billion won in cumulative assets under management and to have at least 30% of their commitments (LOCs) from pension funds and institutional investors, among other criteria. In the market, it is known as a “demanding LP.”
An IB industry source said, “As the exit market contracts, managers pursuing secondary strategies are securing commitments from institutional investors one after another,” adding, “With the infrastructure cap raised, competition among infrastructure managers is also likely to intensify in the General Assembly Pension Foundation’s second allocation.”
[email protected] Kang Gu-gwi Reporter