Construction workers' fund to commit W60b to PEs, VCs

A logo of the Construction Workers Mutual Aid Association

South Korean institutional investor, the Construction Workers Mutual Aid Association, has selected four domestic external partners for its 60 billion-won ($53.7 million) commitment to have exposure to private equities and venture capital, an official said Friday.

The institutional investor, dedicated to the welfare of workers in the field of construction, has decided to allocate a combined 40 billion won to Dominus Investment and Stic Investments for its private equity exposure. The external partners are mandated to earmark a combined 100 billion won for their vehicles which has at least 10-year fund life.

As for the 20 billion-won venture capital exposure, CWMAA has selected Stonebridge Ventures and Atinum Investment as external partners to create a 50 billion won fund for startup investment. The VC funds will run for at least eight years.

The CWMAA was managing 3.9 trillion won worth of assets as of end-2020. Of the total assets, 26 percent is allocated to alternative investments, while the institutional investor has 60 percent exposure to fixed-income assets.

Also in 2020, the CWMAA returned 4.8 percent, as equities gained 17.6 percent and alternative assets yielded 7.7 percent.

By Son Ji-hyoung (consnow@heraldcorp.com)

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