TLDR:
- Korea’s KDB has widened the gap in VC fundraising in the first half of the year
- NPS is set to fund up to $255 million in commitments in July
According to the article, state-run Korea Development Bank (KDB) has increased its capital commitment, leading to a gap in fundraising for South Korean venture capital firms. KDB has recently committed 150 billion won to PE houses Premier Partners LLC and JKL Partners Inc. The two firms will need to raise additional funds to secure this commitment fully.
In addition, the National Pension Service (NPS) is expected to expand this gap further by committing up to 350 billion won ($255 million) as early as July. NPS has already tapped North Asia-focused MBK Partners and plans to hire more firms to commit a combined capital of 100 billion won-350 billion won. The choices made by NPS in selecting PE managers for funding will play a significant role in their fundraising performance this year.
Smaller PE managers like Q Capital Partners have stood out in large institutional investors’ funding. Conversely, firms like Centroid Investment Partners, despite major deals, have faced challenges in capital raising. Market insiders are closely watching the moves of KDB and NPS, as their commitments can make funding from other institutional investors easier for asset managers in Korea.
Overall, the article highlights the importance of the capital commitments from KDB and NPS in shaping the fundraising landscape for venture capital and private equity firms in South Korea.
