Key Takeaways
- • South Korea's Public Officials Benefit Association (POBA) is seeking up to five asset managers for domestic and overseas hedge fund mandates totaling approximately $150 million.
- • Domestic mandates target equity-focused strategies, while overseas allocations are structured as fund-of-funds investments.
- • KOSDAQ venture strategies, fixed-income strategies, and strategies focused on real estate or other alternative assets are excluded from eligibility.
- • POBA has been active across private markets, including a $140 million commitment to four Korean buyout and growth equity firms and a $250 million property account.
Summary
South Korea's Public Officials Benefit Association (POBA), a retirement fund for municipal and provincial government officials, is seeking up to five asset managers for domestic and overseas hedge fund mandates, according to the KED Global report. The mandate is roughly $150 million in size. Domestic allocations target equity-focused strategies, while overseas exposure will be made through fund-of-funds investments.
The request excludes several strategy types. KOSDAQ venture strategies, fixed-income strategies, and strategies focused on real estate or other alternative assets are not eligible, narrowing the field to equity-oriented hedge fund managers.
The mandate fits within a broader pattern of POBA deployment. The fund recently committed 200 billion won ($140 million) to four private equity firms focused on buyouts and growth equity, and it has acquired a private student housing portfolio in Spain as its first investment under a 220 million euro ($250 million) separately managed account. The fund has also been increasing exposure to US REITs and senior housing, as reported by KED Global.
The hedge fund search also comes as South Korean institutional investors reposition portfolios. According to KED Global coverage of an ASK 2026 CIO panel, Korean limited partners are shifting toward defensive positioning and favoring private credit, while preparing for prolonged high interest rates and inflationary pressure. Separately, global investors have been rushing to mandate South Korean hedge fund managers as the Kospi index reached record highs in late 2025.
The request excludes several strategy types. KOSDAQ venture strategies, fixed-income strategies, and strategies focused on real estate or other alternative assets are not eligible, narrowing the field to equity-oriented hedge fund managers.
The mandate fits within a broader pattern of POBA deployment. The fund recently committed 200 billion won ($140 million) to four private equity firms focused on buyouts and growth equity, and it has acquired a private student housing portfolio in Spain as its first investment under a 220 million euro ($250 million) separately managed account. The fund has also been increasing exposure to US REITs and senior housing, as reported by KED Global.
The hedge fund search also comes as South Korean institutional investors reposition portfolios. According to KED Global coverage of an ASK 2026 CIO panel, Korean limited partners are shifting toward defensive positioning and favoring private credit, while preparing for prolonged high interest rates and inflationary pressure. Separately, global investors have been rushing to mandate South Korean hedge fund managers as the Kospi index reached record highs in late 2025.
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