[Asia Exclusive] IMM PE Secures 10 Trillion KRW in Assets Under Management Within 3 Years

Annual Sales Revenue Sustains Growth at 26% per Year on Average

Kim Young-ho, CEO of IMM Private Equity, is being interviewed on the 23rd at the Gangnam Finance Center in Seoul. Photo by Kang Jin-hyung aymsdream@

Recently Established Affiliate ICS and

Secured Total Assets Under Management of 7.6 Trillion KRW

Currently Raising Rosegold Fund No. 5

Raised 600 Billion KRW from 11 Institutions

[Asia Economy Reporter Park Soyeon] IMM Private Equity (IMM PE), together with its recently established affiliate IMM Credit & Solution (ICS), has secured a total of 7.6 trillion KRW in assets under management and has conducted 43 cumulative management buyouts and growth capital investments. It is recognized as a private equity fund (PEF) manager trusted by institutional investors for its stable investments while consistently securing returns.

Kim Young-ho, Head of Investment at IMM PE, said, "Venture investments operate on a structure where 1 or 2 out of 10 investments become big hits, generating returns of hundreds or thousands of times, but PEFs approach investments by analyzing a company's financial structure through mathematical calculations." He added, "If the invested company grows by 10-20% annually, the strategy is to manage it well over 5 to 10 years so that the corporate value can double or even triple."

Kim explained, "Typically, when creating a fund of about 2 trillion KRW, investments are made in 10 places with 200 billion KRW each. The strategy is to invest 1 trillion KRW to create 2 trillion KRW, rather than taking risky investments by investing 100 billion KRW to make 1 trillion KRW."

He also said, "In the case of Hanssem, it has only been 6 months since the investment, so it is too early to evaluate, and for Socar, which has now gone public, internal risk management regarding stock price decline is in place."

Kim’s responsible investment strategy is also reflected in the successful returns of previous funds. IMM PE has realized stable returns up to the 5th fund. As of the end of 2021, the internal rate of return (IRR) for the growth funds was 8.2% for Fund No. 1, 15.3% for Fund No. 2, 9.6% for Fund No. 3, and 30.8% for Fund No. 4.

Specifically, completed buyout projects include Hollys F&B, Daehan Electric Wire, W Concept Korea, and Taelim Paper. Current portfolio holdings include Able C&C, Air First, Hana Tour, Hyundai LNG Shipping, Genewon Science (Korea Kolmar CDMO business), Pet Friends, and Hanssem.

Growth capital investments have completed 18 exits including Handok and Genexine. Ongoing investments include Korea Shipbuilding & Offshore Engineering, Samho Heavy Industries, K Bank, Socar, Kidari Studio, Woori Financial Group, Shinhan Financial Group, Kyobo Life Insurance, Mars Entertainment Group, Bear Robotics, SK Lubricants, Daewoo Electronics Materials, L&F, and Samsung Life Insurance.

Operating revenue has steadily grown at an average annual rate of about 26%, from 25.6 billion KRW in 2016 to 81.3 billion KRW in 2021. The strategy is to increase assets under management to enhance profitability.

With a goal to secure 10 trillion KRW in assets under management by 2025, the Rosegold Fund No. 5 is currently being raised. The target is to raise a final 2.6 trillion KRW by the end of next year. The fund formation began in the second quarter of this year, and so far about 600 billion KRW has been raised from 11 institutions.

Kim said, "The era of hereditary corporate management lasting for generations in Korea is over. From the perspective that only rational companies that properly plan and execute business plans to achieve results survive, the role and opportunities for PEs will continue to grow."