The Korea Investment Corporation (KIC) is preparing to award its first-ever mandates to Korean private equity firms, committing between $100m and $200m across two to three managers, according to KED Global.

The sovereign wealth fund, which manages $206.5bn in assets for the Bank of Korea and the finance ministry, has historically been restricted from domestic investments. The upcoming allocations will instead target cross-border M&A transactions involving South Korean companies as strategic investors.

KIC is expected to issue requests for proposals in the near term, with a final selection of fund managers due around November.

The initiative represents the first deployment of a $5bn commitment made by the finance ministry in 2015 to support Korean firms’ overseas acquisitions. To date, none of this capital has been invested.

An industry official noted the mandates highlight KIC’s efforts to diversify deal sourcing while reinforcing South Korean corporates’ global ambitions.

The move is also expected to provide momentum to Korea’s private equity sector by opening up sovereign wealth capital to domestic managers for the first time in KIC’s two-decade history.

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.