이 기사는 2019년 12월 26일 16시19분 thebell에 표출된 기사입니다

South Korea’s fund of funds (FoF) operator Korea Growth Investment Corp. (K-Growth) has picked three investment firms to commit a total of 30 billion won ($25.8 million) in a bid to boost investment in mid-market companies in the country.

Korea Investment Partners, SV Investment and Company K Partners will act as general partners for three new funds, each of which will receive 10 billion won ($8.6 million) from a fund of funds formed by K-Growth in cooperation with Industrial Bank of Korea (IBK), K-Growth announced on December 20.

All of these funds aim to invest in domestic startups and small and mid-sized enterprises (SMEs), especially those with next-generation technologies or seeking to expand to overseas markets in the materials, parts and equipment sectors.

The funding program is composed of two parts: private equity and venture capital activities. Korea Investment Partners will manage a private equity fund with a focus on smaller but established businesses. Meanwhile, SV Investment Corporation and Company K Partners will manage venture funds that will focus on growth-equity investments.

Korea Investment Partners has become the final winner, beating other contenders including KTB Private Equity, Stonebridge Capital, Dominus Investment and Keystone Private Equity during a two-month selection process. SV Investment and Company K Partners have beaten Lindeman Asia Investment.

The size of the private equity fund should be more than 170 billion won ($146 million), while each venture fund should be greater than 50 billion won ($43 million). Three investment firms need to raise the remaining amount – apart from 30 billion won of the committed capital from K-Growth – from other institutional investors by June of 2020.

Each fund will be operated for ten years and its investment period is five years. The general partners also need to contribute at least one percent of the committed capital of the fund.

(By reporter Kang Chul)