Korean Sovereign Fund Expanding PE Commitments and Prowess


January 29, 2015

Korea Investment Corp (KIC) is hoping to double its allocation to alternative assets, including private equity, in preference to stocks and fixed income this year. According to a WSJ interview with KIC Chief Executive Hongchul Ahn, the figure will go from 8% to 20% by year end. Focus for investment allocation is developed markets, US and European, due to their accounting standards and business transparency, said Ahn.


Both PE fund allocations and direct deals are on the agenda. Past returns for its LP directs were not satisfactory so Ahn’s has been building up an internal research team and he plans to expand it this year, he said. In that respect, it is following the Canadian model for direct investments (see DealMarket Digest reports on this model here and here

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