Weekly Digest: OMERS chases Asia private credit; Temasek unit closes first Greater China fund

The following briefs are curated from press releases and third-party media sources.

TOP NEWS OF THE WEEK

The Ontario Municipal Employees Retirement System (OMERS) has partnered with Goldman Sachs Asset Management (GSAM) to invest in private credit deals across the Asia Pacific.

The collaboration managed by GSAM's private credit division in Asia, aims to offer lending solutions to corporations and lending organisations in the region, with a specific focus on senior direct lending.

The partnership will also explore opportunities in mezzanine and hybrid lending, capitalising on the increasing demand in the region's private lending space.

While specific details were not disclosed, this marks the first time that Goldman Sachs Alternatives has raised external capital for such a partnership in Asia Pacific.

Source: Goldman Sachs

OTHER INVESTMENT NEWS

AUSTRALIA

The merger between Mine Super and TWUSUPER, two industry superannuation funds, is set to proceed, following the appointment last week of a new CEO to lead the newly formed entity.

A successor fund transfer deed has been signed that will see Mine Super and TWUSUPER merge in early 2024, creating a A$20 billion ($12.6 billion) entity with 150,000 members.

Vasyl Nair, the current CEO of Mine Super, will lead the new fund, while Christina Langby, the chair of Mine Super, and Nick Sherry, the chair of TWUSUPER, will serve as co-chairs. Frank Sandy, the CEO of TWUSUPER, will remain with the fund during the transition.

This memorandum of understanding comes after TWUSUPER's unsuccessful attempt to merge with the Australian Catholic Superannuation and Retirement Fund.

Source: TWUSUPER

Commonwealth Bank Group Super (CBA Group Super) has offered an update to its members regarding its planned merger with the Australian Retirement Trust (ART).

CBA Group Super said that its members will be transferred to ART by the end of next month, although a final agreement has not yet been reached. The final agreement is expected to be reached this month, and the merger will occur in two phases.

The first phase, on November 4, will involve transferring members and beneficiaries with entitlements in Retirement Access and Accumulate Plus, as well as those with defined benefit entitlements (excluding lifetime pension), to ART. The second phase, expected in the first half of 2024, will involve the transfer of members currently receiving lifetime pension entitlements.

Source: CBA Group Super

HONG KONG

Regulators from Hong Kong and mainland China announced the expansion of the Cross-boundary Wealth Management Connect Pilot Scheme in the Greater Bay Area, including resident eligibility, range of investment products and eligible participating financial institutions, and investment limit.

The financial regulators in the mainland, Hong Kong and Macao will revise and refine the relevant implementation details and operational guidance with a view to implementing the above measures as soon as practicable.

Source: Hong Kong Monetary Authority

KOREA

The insurance arm of Korea Post has issued a request for proposal for overseas infrastructure fund managers with a submission deadline of October 17. The plan is to commit up to $200 million to two managers.

Eligible managers should manage a blind-pool, closed-end fund with at least $1 billion or €1 billion in target size, with a focus on developed countries, including North America, Europe and Australia. 

The firm should have at least three investment professionals experienced in managing infrastructure funds for over 10 years and should globally manage an infrastructure portfolio of at least $10 billion in assets under management.

Source: Korea Post

Sovereign wealth fund Korea Investment Corporation (KIC), is set to invest W200 billion ($150 million) in Apollo Global Management, the world’s second-largest private equity firm.

According to industry sources on October 1, KIC will allocate to Apollo Global Management’s 10th buyout fund.

The fund, with a total target size of $25 billion, has already raised over $13 billion, surpassing the halfway mark.

KIC is also expected to invest more than W50 billion in an upcoming Apollo co-investment fund.

Source: Maeil Business News

SINGAPORE

True Light Capital, a unit of Temasek, has closed its True Light Fund 1 at $3.3 billion with third-party capital commitments from sovereign wealth funds, foundations, financial institutions and family offices.

The fund will invest alongside Temasek directly in private and public equity as well as indirectly through private equity and venture funds “which have a nexus to or have a major business relationship with Greater China”.

Key industries include life sciences, technology, consumer, industrials and business services. Established in 2021, True Light Capital manages approximately $3.3 billion out of its offices in Singapore, where it is headquartered, and Shanghai.

Source: True Light Capital