Investment Process

In order to achieve KIC’s investment objective and also ensure independency and transparency of investment decision-making process, KIC has implemented three different committees.

Investment Committee (IC): The IC performs final review of investment projects and investment decisions.  KIC’s CEO serves as chairman, and the board members and head of research center serve as members to the committee.

Investment Working Committee (IWC): The IWC is responsible for overall review of investment thesis and risks associated to investment projects. KIC’s CIO serves as chairman, and the respective heads of investment and risk management divisions serve as members to the committee.

Risk Management Working Committee (RWC): The RWC reviews and evaluates the risk aspects of investment projects. KIC’s CRO serves as chairman, and the respective heads of investment and risk management divisions serve as members to the committee.

[External Manager Selection Process]
When selecting traditional and alternative asset external managers, KIC employs the following process: ① Request for Proposals (RFPs) to prospective managers, ② Conduct initial RFP evaluation, ③ Construct a candidate short list via preliminary IWC, ④ Conduct due diligence on shortlisted candidates, ⑤ Evaluate candidates via IWC, and ⑥ Make final decision via IC.
 

[Alternative Assets Direct Investment Process] 
KIC’s alternative assets direct investment employs the following process: ① Initiate preliminary review of investment projects via IWC, ② Conduct due diligence on selected projects, ③ Conduct an intensive review via IWC, ④ Evaluate risk of potential projects via RWC, and ⑤ Make final decision via IC.

[Alternative Assets Direct Investment “Co- Investment with existing GPs"]
Co-investments with KIC’s existing GPs (General Partners) go through the following abbreviated process: ① Due diligence, ② IWC review, and ③ Final decision by the CIO.

[Alternative Assets Direct Investment “Fast Track”]
KIC also utilizes a Fast Track process for investments that require timely investment decisions which cannot be accommodated through the standard direct investment process. The following process constitutes the Fast Track: ① IC approves potential projects to undertake the Fast Track process, ② Conduct due diligence on selected projects, ③ IWC evaluates projects, and ④ IC makes final decision. Furthermore, IWC and IC members may combine the two committees to ensure timeliness, on a needed basis.  The goal of  the Fast Track process is to  allow flexibility and timely decision making while retaining the balance of thorough review.