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Engaging Korean LPs
Co-Investments
Co-Investments
KIC seeks to expand investment opportunities and generate stable returns through co-investments with domestic and global financial institutions.
Expanding mandates to domestic managers and co-investing
with domestic financial institutions
KIC is gradually expanding investment mandates to domestic asset management firms to help them build overseas investment expertise. Their number has steadily increased each year, reaching a total of eight—six for equities, one for hedge funds and one for fixed income—as of the end of 2024.
Looking ahead, KIC plans to steadily expand the scale of mandates to domestic managers in line with the development of Korea’s asset management industry, while also diversifying the asset classes and investment strategies.
KIC also collaborates with major domestic institutional investors by sharing information on attractive investment opportunities and promoting continuous cooperation. This includes identifying high-quality alternative investment opportunities, exploring coinvestment opportunities and providing information and access to global alternative investment networks to enhance their understanding of international markets.
In 2021, KIC established a hedge fund joint ventureJV with the National Agricultural Cooperative Federation and National Federation of Fisheries Cooperatives to support domestic financial institutions investing in overseas hedge funds. In 2022, the Seoul Guarantee Insurance Company and Tongyang Life Insurance joined the JV.
KIC also contributes to the development of Korea’s finance industry by partnering with domestic alternative investment managers, investment banks and securities firms on strategic investments. We remain committed to fostering mutual growth with Korea’s asset management industry and institutional investors through a broad range of cooperative efforts.
Expanding Delegation to Domestic Asset Managers and Co-Investment with Korean Financial Institutions
KIC is gradually expanding its delegation to domestic asset management firms to help them build expertise in overseas investments. In 2023, for the first time since its establishment, KIC selected a domestic manager for its global fixed income portfolio.
As a result, by the end of 2023, KIC had entrusted a total of six domestic asset managers—four in equities, one in hedge funds, and one in fixed income. KIC plans to continue increasing the scale of delegation in line with the growth of Korea’s asset management industry, while also diversifying asset classes and investment strategies.
KIC also maintains close collaboration with major domestic institutional investors by sharing information on high-quality investment opportunities. It identifies promising alternative investments and explores potential co-investment opportunities with local partners. In addition, KIC provides insights and networking access to leading global alternative investment firms, supporting Korean institutions in strengthening their understanding of international markets.
In particular, to support overseas hedge fund investments by Korean financial institutions, KIC established a hedge fund co-investment joint venture in 2021 with the National Agricultural Cooperative Federation and the National Federation of Fisheries Cooperatives. In 2022, Seoul Guarantee Insurance and Tongyang Life Insurance also joined the JV.