400 Billion Scale, Anchor LP F&F Holdings
Considering Investment in Webtoon and Entertainment Companies
[Asia Economy Reporter Kwangho Lee] F&F Partners, a subsidiary of the fashion company F&F known for clothing brands MLB and Discovery, is preparing for a new start. By registering as a New Technology Business Financial Company (Shingisa) with the Financial Supervisory Service, it has expanded its operational scope and increased the size of its first fund, gearing up for more active venture investments.
According to the investment banking (IB) industry on the 26th, F&F Partners recently secured the Shingisa license and simultaneously liquidated the ‘F&F Partners Discovery No.1 Partnership’. With the transition from a general corporation to a Shingisa, the existing portfolio was moved to the ‘F&F New Technology Investment Partnership No.1’ and increased to 40 billion KRW. The parent company, F&F Holdings, participated as a limited partner (LP).
The lead fund manager is CEO No U-ram. He graduated from Purdue University with a degree in Electronic Engineering and completed an MBA program at the Korea Advanced Institute of Science and Technology (KAIST). Afterward, he worked at M Ventures, Shinhan Venture Investment (formerly Neoplux), and Square Ventures before becoming the head of F&F Partners in 2020.
F&F Partners’ first fund started at 16 billion KRW and has steadily increased. Investments were made quickly upon fund formation. In particular, they have bet on content-related companies such as Channel Oct, Bambunetwork, Why Not Media, Redbrick, Gomi Corporation, RXC, and By4M, injecting vitality into the content market.
The newly formed F&F New Technology Investment Partnership No.1, established after transitioning to Shingisa, is also expected to serve as a growth catalyst for startups in the content sector. Currently, they are reviewing the growth potential of a webtoon company and plan to execute an investment as early as this month. Additionally, they are closely watching multiple entertainment companies.
F&F Partners also plans to establish a second fund within the year. Although specific details such as the fund size have not yet been finalized, it will be managed in a different direction from the existing first fund. They are also considering tapping into policy funds such as the Korea Fund of Funds. The possibility of a co-GP (Co-General Partner) fund structure is also open.
The background for the new start as a Shingisa lies in ‘flexibility’. A typical venture capital (VC) type startup investment company must invest at least 40% in venture and small-medium enterprises within seven years of establishment. In contrast, Shingisa is not subject to such mandatory investment ratio restrictions.
It also has the advantage of fewer regulations compared to private equity funds. While private equity funds are subject to various sales, establishment, operation, and investment regulations under the Capital Markets Act, new technology investment partnerships are only required to follow registration procedures under the Specialized Credit Finance Business Act. For this reason, competition for Shingisa registration is gradually intensifying.
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