Korea Investment Corp. seeks to offload over $1B in private equity stakes

Korea Investment Corp., the sovereign wealth fund that manages South Korea’s foreign reserves, is looking to sell private equity stakes valued at more than $1 billion.

The planned sale comes at an interesting moment for KIC. The fund posted a record annual return of 13.91% for 2025, its best performance since it was established in 2005.

The secondary market is getting busy

KIC isn’t the only heavyweight reshuffling its private equity book. Singapore’s GIC announced in August 2026 that it was marketing roughly $1 billion in private equity fund stakes, with PJT Partners advising on the process. Around the same time, the University of California system completed a $1 billion stake sale to HarbourVest Partners.

For KIC, the calculus likely involves what portfolio managers call the “denominator effect” in reverse. When public equities rise sharply, as they did for many funds in 2025, the percentage allocation to private equity can look uncomfortably large relative to the overall portfolio. With KIC’s public equity portfolio valued at approximately $52.66 billion as of June 30, 2026, keeping private equity allocations in line with target weights requires periodic trimming.

Why KIC’s timing matters

KIC has historically favored a steady, somewhat conservative approach to portfolio construction. The fund has been deepening relationships with domestic asset managers to pursue global mergers and acquisitions, signaling a preference for building capabilities organically rather than simply writing checks to external fund managers.

What this means for the PE secondary market

For secondary market buyers, the influx of supply creates opportunities. Firms like Ardian, Lexington Partners, and HarbourVest have raised massive dedicated secondary funds precisely for moments like this. A $1 billion-plus portfolio from a sophisticated seller like KIC would attract significant interest from these specialized buyers, likely resulting in a competitive auction process.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.