National Pension Service Announces Selection of VC and PE Fund Managers for 950 Billion KRW

The National Pension Service (NPS) has begun selecting General Partners (GPs) for entrusted management. A total of 950 billion KRW will be invested. Attention is focused on the GP selection.

According to the investment banking (IB) industry on the 10th, NPS announced its plan to select domestic private equity entrusted management firms this year and has started the selection process. The selection of PEF sector managers will be completed in the first half of the year, and recruitment of venture fund managers will begin in the second half.

[Image source=Yonhap News]

The entrusted management amount for the private equity fund (PEF) sector is 800 billion KRW. Three GPs will be selected. Each GP can autonomously propose an amount ranging from 150 billion to 350 billion KRW. The fund maturity is within 10 years, with the possibility of two one-year extensions.

The entrusted management amount for the venture capital (VC) sector is 150 billion KRW. Four firms will be selected. Each manager can autonomously propose an amount between 30 billion and 60 billion KRW. The maturity is within 8 years, with the possibility of two one-year extensions.

NPS’s investment is limited to no more than 35% of the total fund size. Performance fees are paid up to 20% of excess returns if the internal rate of return (IRR) exceeds the benchmark return of 8%. Management fees are capped at 1% or less for the PEF sector and 1.2% or less for the VC sector.

Applications for the PEF sector will be accepted until the 27th of this month. Results will be announced in June. For the VC sector, applications will close in August, with final selections made around November.

This content was produced with the assistance of AI translation services.