이 기사는 2020년 03월 09일 08:00 thebell 에 표출된 기사입니다.

STIC PE Fund III is the third private equity fund of South Korea’s STIC Investments, which has transformed itself from a small tech-focused venture capital firm into one of the largest private equity firms in the country.

The Seoul-based firm launched its first PE fund, ORYX/STIC Fund I, with $150 million in 2006, seven years after its foundation. The fund drew a lot of attention at the time, as it was backed by Saudi Arabia's National Commercial Bank, which was the only limited partner of the fund. This was also the first case of a South Korean PE firm raising capital from a foreign investor.

With a focus on mid-sized growth businesses, ORYX/STIC Fund I deployed capital into total 18 companies. The fund exited all of its investments, generating an internal rate of return, net of fees, of 22 percent.

On the back of a successful track record, STIC successfully closed its second PE fund – STIC Korea Integrated-Technologies New Growth Engine PEF – at 200 billion won ($168 million) in 2009. It continued to pursue a strategy of focusing on mid-market companies with promising growth prospects primarily in the IT and biotech sectors. The fund has exited all investments except one as the end of its life approaches.

In 2013, STIC closed its third PE fund at 450 billion won ($377 million), which was larger than its two predecessors, with a first close in February followed by a final close a few months later. The fund received commitments from domestic institutions, including anchor investor Korean Teachers’ Credit Union (KTCU) which committed 100 billion won, as well as large institutional investors from the Middle East, including sovereign wealth fund Abu Dhabi Investment Authority (ADIA) and Saudi Economic and Development Co. (SEDCO).

Through its third PE fund, the firm made several buyouts apart from significant minority investments, deploying capital into total 15 companies. Among them, it fully exited one company, semiconductor maker RFHIC Corporation, last year with a money multiple of 1.85 times. It also recently put its car infotainment company Daesung Eltec and marine parts supplier Orion Technology up for sale.

STIC has explored new opportunities to expand across geographies for the past few years. In May 2018, the firm closed its fourth PE fund, STIC Pan-Asia 4th Industry Growth Private Equity Fund, at 317 billion won ($266 million) with a focus on growth companies in Asia’s emerging countries like Vietnam and India. The move marks a clear shift in the firm’s private equity strategy given that the third fund invested 80 percent of capital in domestic companies.

In less than two years since its launch, the fourth fund deployed almost 75 percent of committed capital, with 80 percent of the amount used to invest in overseas companies, including an acquisition of a minority stake in Chinese food service company Joyvio Group in partnership with SK Group. It also invested in Vietnam’s shrimp farming company Viet UC Seafood and India's hyper-local delivery startup Dunzo.

Going forward, STIC will likely focus on raising capital for its fifth PE fund to build dry powder. “STIC Investments transformed itself from the first generation venture capital firm into the country’s leading PE firm, but it has lacks a consistent strategy for its fund series,” an industry insider said. “The recent move of setting a clear direction is positive for the firm.”

(By reporter Kim Hye-ran)