Noranwoosan Gongje, Launches 260 Billion KRW Investment in PEF

General League 240 Billion, Rookie League 20 Billion Investment
GP Sole Formation Required, Co-GP (Co-GP) Not Allowed

[Asia Economy Reporter Kwangho Lee] The Small Enterprise and Small Business Mutual Aid under the Korea Federation of SMEs is recruiting domestic blind PEF (Private Equity Fund) general partners (GPs). Intense competition is expected amid prolonged tightening of investment market funds.

According to the investment banking (IB) industry on the 14th, the Korea Federation of SMEs will invest 260 billion KRW in the Yellow Umbrella domestic blind PEF. It plans to select six companies in the general league and invest 240 billion KRW. The remaining 20 billion KRW is allocated to the rookie league, supporting two companies with 20 billion KRW.

The submission period for investment proposals is until the 26th. After receiving proposals and starting document screening, the final GPs will be selected in November. Once selected as a GP, the fund must be formed within one year. The investment period is five years, and the fund maturity is ten years.

However, the co-general partner (Co-GP) method is not allowed. Even if past profits through Co-GP were outstanding, related performance will not be recognized. The benchmark internal rate of return (IRR) is 7% or higher.