The Public Officials Benefit Association has completed the selection of its overseas private debt fund firms. The association selected two North American firms and three European ones who will manage its US$120-million debt funds.
According to industry sources on March 19, the pension fund selected five foreign companies as its overseas private debt fund operators, including Guggenheim, Medley, Alcentra, Bluebay, and Park Square.
Guggenheim and Alcentra each will be responsible for running $30-million funds, while the remaining three will manage $20 million apiece.
The private debt fund operators selected by POBA are engaged mainly in investment in senior secured loans that are relatively safe investment options offering an annual yield of about 5 percent. The association has increased its private debt fund investment in recent years, including the $100-million investment in June 2016.
POBA officials said, "Private debt funds can generate higher yields if the U.S. benchmark interest rate continues an upward trend."
The National Pension Service (NPS) will further increase the proportion of overseas investment with a higher share of global equities, according to its asset allocation plan for the 2017-2022 period. Global equities will make up around 25% by end-2022, versus&hellip
South Korea’s leading asset owners are planning to expand private debt investment this year in pursuit of medium risks and medium returns, setting their eyes on direct lending and mezzanine notes. In a recent poll of the country’s 20 institutional&hellip
Jae-Sang Kim, who had worked with National Pension Service’s (NPS) Chief Investment Officer Myoun-Wook Kang in asset management firms for several years, was appointed on May 24 to lead the global alternative investment division of the $500 billion pension fund. NPS&hellip