Korea Post picks Blackstone, Grosvenor

July 07, 2014  

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.

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