Partners Group wins KIC mandate

The Swiss gatekeeper will manage the Korean sovereign wealth fund's nascent secondaries programme.

Korea Investment Corporation (KIC) has awarded a private equity secondaries mandate to Switzerland-based Partners Group.

The sovereign wealth fund intends to take advantage of high discounts to net asset value currently seen in the secondaries market, KIC said in a statement.

KIC has only recently started its private equity programme. In June, the Korean government agreed to inject $3 billion into the sovereign wealth fund, of which $1 billion will be invested in alternatives. KIC plans to invest in LBO, mezzanine, distressed, growth capital, venture capital and real estate funds, according to its 2008 annual report.

Private equity secondaries have continued to attract interest in the wake of the financial crisis. Last week, the New Jersey Division of Investment, which manages the state’s $63 billion pension scheme, held discussions about launching a dedicated investment programme targeting private equity secondaries.

KIC was set up in 2005 to manage part of Korea’s foreign reserves. Presently, the fund manages assets of $25 billion.