Key Takeaways
- • Nuveen has secured a $100 million commitment from South Korea's Government Employees Pension Service (GEPS) for a US-focused private capital mandate, according to a Nuveen release reported by Mingtiandi.
- • GEPS selected Churchill Asset Management, the private equity arm of Chicago-based Nuveen, to target US junior capital and private equity opportunities.
- • The $5 billion pension fund is pursuing higher-growth investments through global managers, following its July 2023 selection of Apollo, Warburg Pincus and EQT for $40 million mandates each.
- • Nuveen, with $1.3 trillion in AUM across 27 countries as of end-September, is expanding its Korean footprint, including a KRW 350 billion ($250 million) Seoul office acquisition.
Summary
Nuveen has secured a $100 million commitment from South Korea's Government Employees Pension Service (GEPS) for a US-focused private capital mandate, Nuveen said in a release on Tuesday. GEPS selected Churchill Asset Management, a private equity arm of Chicago-based Nuveen, to oversee the investment, which aims to enhance the pension fund's global portfolio by targeting US junior capital and private equity opportunities.
Alongside the mandate, Nuveen's parent, the Teachers Insurance and Annuity Association of America (TIAA), signed an agreement with GEPS to maintain a close relationship through educational programmes, sharing of investment knowledge and insight, networking with local organisations, and data sharing. Mike Perry, head of the global client group and global product at Nuveen, said the mandate "marks another significant milestone for Nuveen and TIAA in the region" and underlined the importance of the firm's on-the-ground presence in Seoul.
The mandate fits a broader pattern at the $5 billion pension fund, which is pursuing higher-growth investments with help from global managers. In July 2023, GEPS selected Apollo Asset Management, Warburg Pincus and Sweden's EQT to manage its overseas private equity portfolio, with each receiving a $40 million mandate. GEPS is also reviewing bids for its overseas real estate debt portfolio, with Blackstone, KKR, Goldman Sachs and Starwood Capital shortlisted, according to the Korea Economic Daily; the fund plans to select two firms and commit up to $35 million to each. GEPS chief investment officer Baek Joohyun described the Nuveen mandate as an important step in the fund's strategic evolution, saying it would improve portfolio operating profitability and enhance GEPS's investment capacity.
Churchill, a former Carlyle Group unit that joined TIAA in 2015, oversees $50 billion in committed capital across direct lending and private equity. Separately, Nuveen's real estate division recently made its first office investment in South Korea, acquiring the Jeongdong Building in Seoul's Jung business district from IGIS Asset Management for a reported KRW 350 billion ($250 million), understood to be under its Asia Pacific Cities strategy. Nuveen had $1.3 trillion in assets under management at the end of September across 27 countries.
Alongside the mandate, Nuveen's parent, the Teachers Insurance and Annuity Association of America (TIAA), signed an agreement with GEPS to maintain a close relationship through educational programmes, sharing of investment knowledge and insight, networking with local organisations, and data sharing. Mike Perry, head of the global client group and global product at Nuveen, said the mandate "marks another significant milestone for Nuveen and TIAA in the region" and underlined the importance of the firm's on-the-ground presence in Seoul.
The mandate fits a broader pattern at the $5 billion pension fund, which is pursuing higher-growth investments with help from global managers. In July 2023, GEPS selected Apollo Asset Management, Warburg Pincus and Sweden's EQT to manage its overseas private equity portfolio, with each receiving a $40 million mandate. GEPS is also reviewing bids for its overseas real estate debt portfolio, with Blackstone, KKR, Goldman Sachs and Starwood Capital shortlisted, according to the Korea Economic Daily; the fund plans to select two firms and commit up to $35 million to each. GEPS chief investment officer Baek Joohyun described the Nuveen mandate as an important step in the fund's strategic evolution, saying it would improve portfolio operating profitability and enhance GEPS's investment capacity.
Churchill, a former Carlyle Group unit that joined TIAA in 2015, oversees $50 billion in committed capital across direct lending and private equity. Separately, Nuveen's real estate division recently made its first office investment in South Korea, acquiring the Jeongdong Building in Seoul's Jung business district from IGIS Asset Management for a reported KRW 350 billion ($250 million), understood to be under its Asia Pacific Cities strategy. Nuveen had $1.3 trillion in assets under management at the end of September across 27 countries.
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