TLDR:
- DSC Investment, a leading VC firm in South Korea, has formed the country’s largest venture capital secondary fund worth $218.9 million.
- The fund has a six-year maturity and aims for an 8% target return.
DSC Investment, a prominent asset manager in South Korea known for investments in companies like Kakao Games Corp. and Musinsa Co., has established the largest secondary fund in the country. With a focus on exploring opportunities for undervalued startup stocks, the 300 billion won fund (equivalent to $218.9 million) has a six-year maturity and targets an 8% return. By utilizing a package deal strategy as a key transaction method, the fund aims to attract investors seeking selling opportunities. This move comes as DSC sees a rising demand for domestic VC secondaries amid a slowdown in the IPO market and a challenging investment environment with elevated interest rates. The fund intends to provide liquidity to the venture capital ecosystem and accelerate capital returns by targeting undervalued companies with strong earnings, particularly those that have completed Series B funding rounds. Through transactions of mature assets, the fund offers both sellers and buyers opportunities for capital returns and discounted purchase prices, respectively.
