Recently, the National Pension Commission issued the Operational Framework for Co-Investment by Pension Fund Administrators (the Framework) in a bid to encourage diversification of pension fund assets and improve returns on pension fund investments. The Framework essentially sets the ground rules for co-investment by Pension Fund Administrators in portfolio companies alongside private equity funds in which they are limited partners.
In this newsletter, we have provided an analysis of the main provisions of the Framework and mechanisms built into the Framework to limit the exposure of pension fund assets to investment risks.
