Corporate Governance Innovation Fund Set to Take Place on Full-Scale Starting from Next month

Mar 13, 2019

It is expected that corporate governance innovation funds will be finalized sometime during next month and are expected to be carried out on full-scale.
It seems that corporate governance innovation fund along with blind fund that is worth at least $399 million (450 billion KRW) and project funds will take place sometime during the first half of this year.
According to financial investment industry, Mirae Asset Venture Investment – Curious Partners, NH Investment & Securities – Opus PE, and Woori PE - Q Capital Partners are going to hold general meetings sometime during this month about forming corporate governance innovation funds and they are expected to execute investments sometime during the first half of this year.
“We are currently deliberating on appropriate time to form corporate governance innovation fund.” said a representative for Mirae Asset Venture Investment. “We are going to finish paying last amount of funds by end of next month and carry out investments afterwards.
NH Investment & Securities – Opus PE ($177 million) and Woori PE - Q Capital Partners ($133 million) will also finish up securing private investors and are currently working on business procedures. All three management companies are expected to finish forming corporate governance innovation funds by May.
Starting from April at the earliest, $443 million (500 billion KRW) worth of funds are expected to flow into restructuring market. Besides three blind funds that are expected to be worth $399 million (450 billion KRW), project funds that select investment companies and invest funds afterwards are also expected to be carried out sometime during April.
Auctus Investment and another PEF (Private Equity Fund) management company formed a corporate financial stability private investment company and decided to acquire Sunjin Air Tech and Sunjin Power Tech. This will be their second project fund followed by Seojin Industrial that was selected as the first investment company for corporate governance innovation fund.

Corporate Governance Innovation Fund Set to Take Place on Full-Scale Starting from Next month

Korea Growth Investment Corporation is planning to carry out additional investments during the second half of this year after observing progress of corporate governance innovation funds during the first half. Besides its additional investment project that is worth $222 million (250 billion KRW), it is currently working on preparing groundwork for additional funds.
“Just as Financial Services Commission announced its plan for additional investments, we are currently securing additional investors for expanding private matching.” said a representative for Korea Growth Investment Corporation. “We will be able to expand our business to create conditions for vitalizing restructuring that is led by capital market.”
As main agents for corporate restructuring have shifted from banks to capital market, restructuring market is expected to continue to grow. Financial authorities are also working on policies that will increase roles of capital market within NPL (Non-Performing Loan) market where liquidated companies participate mostly instead of recovering companies.
“South Korean Government is currently working on policies so that assets and liabilities of small and medium companies and medium-sized companies that are currently at their limits can be handled within private capital market.” said a representative for the financial industry. “Just as financial investment industry recently started to vitalize real estate trust, industries are showing interests towards investments that combine NPL market and real estate financial market.”
Staff Reporter Ryu, Geunil | ryuryu@etnews.com

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