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 Public Officials Benefit Association (POBA) will select two global private credit managers to invest around $200 million in mezzanine debt via separately managed accounts (SMAs). POBA will allocate $100 million to each of two SMAs through two domestic investment&hellip
The Government Employees Pension Service (GEPS) will allocate $20 million to US dollar-denominated structured notes based on South Korean credit default swaps (CDS) and three-month US dollar LIBOR. It received proposals for the investment mandate by the afternoon of June 26.&hellip
Korea Investment Corporation (KIC) will open its third overseas office in Singapore as early as August in its push for alternative investments in Asia, according to a local newspaper report. The opening of a foreign office will come six years&hellip