Korea Investment Corp Reaffirms Commitment to Alternatives
Choi Chong-suk, the Korea Investment Corporation’s new CEO, believes the fund must allocate greater proportion to alternative and strategic investments in its portfolio. The Korea Investment Corporation was founded in 2005 by the Korea Investment Corporation Act and the SWF moved relatively faster compared to other newly created sovereign funds in deploying funds to alternatives.
The Korea Investment Corporation is on the continued path to diversify from traditional bond and equity strategies.
They have already invested in a number of direct investments and allocated funds to a number of alternative managers. In fact, the KIC was able to acquire healthy assets at discount prices due to the financial crisis. The fund aims to expand into commodities and private equity. With regards to private equity, the sovereign wealth fund focuses on global private equity funds in distressed debt and secondary strategies. Recently, the KIC has been examining growth and buyout strategies.
Lastly, the Korea Investment Corporation has signaled interest in doing deals with other sovereign investors.