S. Korean Teachers’ Credit Union to launch $793.2 mn blind fund

2019.04.04 14:18:00 | 2019.04.04 14:18:32

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South Korea’s second largest institutional investor Korean Teachers’ Credit Union (KTCU) is expected to launch a 900 billion won ($793.2 million) worth blind fund, the largest investment for the nation’s mutual-aid association.

According to sources from the investment banking industry on Wednesday, the KTCU is seeking to launch a 900 billion won blind fund with 800 billion won to be allocated in a private equity funds that will invest in large, middle and small-cap equities, and 80 billion won to 100 billion won in venture capital firms.

In particular, it will invest in newly established VCs that have not done many businesses with mutual-aid associations to give them opportunity to build ample experiences, which would result in overall advance of the nation’s capital market.

The KTCU is expected to make the plan official soon.

Market analysts consider the latest fund a bold investment for KTCU with 34.61 trillion won assets under management. Last November, the country’s largest institutional investor National Pension Service (NPS) with 639 trillion won assets under management launched 1.12 trillion won worth fund.

A blind fund refers to an investment raised without determining specific goal or target.

By Chung Seok-hwan and Choi Mira

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