South Korea’s largest institutional investor National Pension Service (NPS) has committed a combined 800 billion won ($667.1 million) to five private equity firms from home and abroad.

Glenwood Private Equity, Macquarie Asset Management Korea, SkyLake Investment, IMM Investment and JKL Partners would be tasked with managing the 10-year maturity funds over the next five years, the world’s third-largest public pension fund with 724 trillion won of assets under management said Tuesday.

Allocation details have yet to be disclosed but each firm is expected to receive an equal share of 160 billion won.

As of end April, NPS devoted 89.9 trillion won, or 12.4 percent of its total assets, to alternative investments including private equity and real estate.

“We plan to continue diversifying our fund portfolio by adding more non-traditional assets to secure our long-term sustainability and profitability,” said Ahn Hyo-joon, NPS chief investment officer.

Glenwood PE, SkyLake Investment and JKL Partners are focused on corporate investment, while Macquarie and IMM Investment specialize in infrastructure assets.

The NPS announcement is likely to boost the buyout firms’ capital-raising efforts for their blind-pool funds.

Glenwood PE is aiming to raise 800 billion won for its No. 2 fund. Macquarie has also set out to collect 750 billion won for its No. 5 fund.

SkyLake Investment and JKL Partners in April were picked by the state-run Korea Development Bank to oversee its growth assistance fund. SkyLake has set a 500-billion-won target for its No. 11 fund and JKL Partners 700 billion won for its No. 5 fund.

IMM Investment is expected to start fundraising for its Petra No. 8 fund.

By Han Woo-ram and Kim Hyo-jin

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