The National Pension Service of Korea is moving toward bespoke partnership structures. Kyle Lee, head of US real estate investment, told the PERE Network Seoul Forum 2026 the fund will abandon commingled vehicles in favor of club deals and separately managed accounts. By customizing each vehicle, NPS hopes to reduce management fees and accelerate capital deployment compared with fund cycles.

Club deals and SMAs let NPS tailor exposure, avoid typical fund fees, and allocate capital directly to projects. This mirrors a broader trend among sovereign wealth funds seeking tighter control and lower expense ratios. Preliminary estimates suggest the new structure could shave 0.5% to 1% off gross fees, boosting net returns on its multi‑billion‑dollar real‑estate portfolio.

The pivot could reshape competitive dynamics in Asian real‑estate markets, as developers may see more direct capital sources and fewer large pooled funds. Investors tracking NPS’s allocations will watch for changes in pricing and deal flow. Large property sponsors are already courting NPS for co‑investment opportunities, recognizing the capital’s speed and scale.