Korea Investment Corp explores sale of more than $1bn in PE stakes

Korea Investment Corp, the South Korean sovereign wealth fund, is exploring a sale of private equity stakes valued at more than $1bn as part of a broader institutional push toward secondary market transactions for portfolio optimization. According to Bloomberg, KIC has engaged PJT Partners, a major investment banking advisor, to guide the process, though the fund's representatives have not yet publicly confirmed the initiative. The discussions remain preliminary, with sources indicating that the final transaction structure, specific assets involved, and ultimate deal size could differ materially from current expectations.

This divestment initiative reflects KIC's strategic approach to rebalancing its alternatives allocation while capitalizing on robust secondary market demand. The fund manages approximately $232bn in total assets, having delivered a 10-year annualized return of 7.07% as of year-end 2025. The portfolio is weighted significantly toward traditional asset classes—equities and fixed income account for more than 78% of holdings—with alternatives including private equity and real estate comprising the balance. A disposal of $1bn-plus in PE interests would allow KIC to adjust its alternatives exposure without requiring new capital deployment into primary fund vehicles.

The transaction illustrates a broader pattern among institutional investors, particularly sovereign wealth funds and large asset allocators, increasingly utilizing secondary markets to execute portfolio transitions and generate liquidity with greater speed and flexibility than direct fund reallocations would permit. For buyers, secondary PE positions provide exposure to established investment portfolios managed by underlying GPs, offering an alternative to committing capital directly to new fund vintages. As of the latest reporting, PJT Partners declined to comment on the engagement, and KIC did not immediately respond to requests for confirmation.