South Korea's state investment entity is looking to offload a portion of its private equity holdings valued at over one billion dollars, according to sources familiar with the matter.

The sovereign fund has engaged advisory firm PJT Partners to manage the transaction, as reported by individuals who requested anonymity due to the confidential nature of the discussions. These sources indicated that negotiations remain at an early phase, with potential adjustments to the deal structure still possible.

When approached for comment, PJT Partners declined to address the matter, while the South Korean investment firm had not responded to inquiries at the time of reporting.

As of the close of 2025, this sovereign wealth manager oversaw assets totaling $232 billion, achieving an annualized return of 7.07% over the past decade. The portfolio allocates more than 78% to traditional asset classes including equities and fixed income, with the remaining capital directed toward alternative investments such as private equity and real estate.

According to a report from Evercore Inc., the secondary market for private equity stakes has seen heightened activity globally, with transaction volumes reaching a record $121 billion in the first half of this year. Rising interest rates and a slowdown in capital deployment have fueled this growth in secondary deal-making.

Amid a sluggish exit environment, investors are increasingly turning to secondary sales of private equity positions as a method to rebalance their portfolios and manage liquidity needs.