The Korean Local Administration Promotion Association is entering the domestic private equity (PE) blind fund investment business for the first time in six years.
According to the investment banking (IB) industry on the 26th, the Promotion Association announced the '2025 Selection Announcement for Domestic PE Blind Operators of the Administration Promotion Association' on the 22nd and is accepting proposals until September 5. The plan is to select four operators for buyout and growth strategy investments targeting corporations in Korea. The Promotion Association will invest a total of 200 billion won, and the formation period is within one year after selection.
Additionally, the Promotion Association plans to select one joint investment operator with a limit of 150 billion won. More than 70% will be allocated to opportunities provided by existing blind fund operators. The selection will be limited to funds in the alternative investment sector.
The Promotion Association is scheduled to individually notify the results of the first evaluation on September 1 and will announce the final results in October after conducting on-site due diligence and a second evaluation.
The industry is paying attention to the fact that the Promotion Association has initiated the PEF investment business through a public competitive bidding method for the first time since 2019. At that time, MBK Partners, SG PE, and H&Q Asia Pacific Korea were selected for a project that invested 120 billion won. Since then, only reinvestments targeting existing transaction operators have been carried out.