Korea Post Savings, based in Seoul, is believed to have
selected Blackstone Alternative Asset Management and Grosvenor
Capital Management as its two fund of hedge funds managers,
after an extensive search for blue-chip operations to form the
core of its hedge fund portfolio.
It is understood that the two will share around $600 million
as an initial allocation although, if successful, the $60
billion government-linked plan does not rule out the
possibility of adding to that amount.
The hire of two industry stalwarts comes as no surprise,
given the scale of Korea Post’s investment
operations and the specified criteria for funds of hedge funds.
The initial request for proposal, issued in August 2013,
limited applicants to those with fund of funds assets of $10
billion or more, and a minimum of 10 years’ fund
of hedge funds experience.
While neither allocation has yet been funded, the scheme is
understood to have finalised its choices earlier this year.
Funding will be made in the coming weeks. At the same time, the
scheme is also looking for single-manager hedge funds as it
seeks to beef up its total alternatives allocation.