Seoul-based private equity firm MBK Partners has entered into a strategic partnership with the W229 trillion ($165 billion; €120 billion) National Pension Service to explore investment opportunities in Korea.
MBK will invest up to $2 billion in the partnership on a transaction-by-transaction basis, with no definite time frame set. The pension fund declined to comment on its investment amount.
The National Pension Service is also in talks with another overseas private equity firm a similar partnership but declined to disclose more details.
Just two days ago, the National Pension Service agreed a similar partnership with global alternatives manager Oaktree Capital Management. Oaktree will invest up to $3 billion and will explore investments in private equity, real estate and special situations in Korea.
Whether the partnerships will be co-investments or commitments via each firm’s funds have yet to be decided, Daeh-hwan Kwag, the pension’s head of global investments told PEO.
Established in 2005, MBK is a North Asia-focused buyout firm, which manages assets of approximately $2.5 billion and has made three investments in Korea to date.
The National Pension Service currently allocates 2.9 percent of its assets to alternatives and can have a maximum allocation of 10 percent to the asset class. It is looking to increase its allocation to private equity funds over the next five years, Kwag told PEO in March.