[RFP] GEPS to consider ESG factors for $100 mn PE secondaries

The Government Employees Pension Service (GEPS) will introduce environment, social and governance (ESG) factors as additional evaluation criteria for selecting two global investment managers to invest $100 million in private equity secondary funds.

GEPS plans to commit $50 million to each of two selected firms, according to its announcement last week. Single sector-focused funds will be excluded from the selection process.

It will be its third allocation to global PE secondary funds since it began the investment in 2014.

For the new mandate, fund houses are required to submit their ratings in the assessment report of the UN Principles for Responsible Investment.

GEPS will receive proposals by Thursday, August 22 and pick two management firms by around mid-October.

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GEPS has been at the forefront of adopting responsible investment among South Korean pension funds.

Last year, it allocated 100 billion won ($83 million) to a global equity fund integrating the ESG factors, in the first allocation to such a fund by a South Korean pension scheme.

In June, GEPS’ chief investment officer Won-joo Seo told the Korean Investors that the $8.7 billion pension fund would ramp up global private equity secondary investment in an effort to secure liquidity.