Participation in Investment by Kyowon Mutual Aid Association and NongHyup Central Association
Plan to Continue Expanding Fund Size
Investment in Growth Industries such as Artificial Intelligence and Bio
[Asia Economy Reporter So-yeon Park] IMM Private Equity (PE) has decided to initially raise a fund of 800 billion KRW, which is about one-third of the target amount for its 5th blind fund. Considering the difficult capital market conditions for fundraising, this is regarded as a commendable achievement.
According to the investment banking (IB) industry on the 2nd, IMM PE plans to complete the first round of fundraising for the Rose Gold 5th Fund within this month. Institutional investors such as the Teachers' Pension, Private School Teachers' Pension, NongHyup Central Association, Korea Investment & Securities, and Samsung Securities have reportedly committed to investing in the 5th fund. A senior official from IMM PE stated, "We plan to close the first round of the Rose Gold 5th Fund by the end of the year with a scale of 800 billion KRW."
Although the fund was initially planned to be raised up to 2.6 trillion KRW, due to recent tightening in the capital markets, the fund size has been reduced for the initial closing, with plans to gradually increase the fund size in stages.
The IB industry evaluates that IMM PE is securing funds steadily despite the capital market contraction caused by concerns over economic recession and interest rate hikes, which have led LPs (limited partners, institutional investors) to reduce their investments. The know-how, communication skills, and investment performance accumulated while raising blind funds have proven effective even in this crisis situation.
Established in 2006, IMM PE raises large-scale funds approximately every 3 to 4 years. The 1st fund was 310 billion KRW (2008), the 2nd fund 760 billion KRW (2011), the 3rd fund 1.26 trillion KRW (2015), and the 4th fund 1.9 trillion KRW (2019), continuously increasing the fund size.
Rose Gold 5th is an ultra-large blind fund with a significant difference in scale compared to the funds raised so far, attracting attention to its investment destinations. It is expected to actively capture M&A opportunities arising from industrial restructuring due to rapid changes in the global economy, as well as growth industries such as artificial intelligence (AI) and biotechnology. IMM PE has mainly invested in leading companies in various industries.
IMM PE, ranked 3rd domestically by committed capital, has conducted large-scale buyouts over the past 2 to 3 years. Portfolio companies invested in during this period include Able C&C, a cosmetics manufacturing and distribution company; Hana Tour, the top travel agency in Korea; and Hanssem, the leading furniture and interior company in Korea. Additionally, IMM PE holds stakes in financial institutions such as Woori Financial Group (5.57%), Shinhan Financial Group (3.7%), and K Bank (2.68%).
IMM PE has also invested in high-growth sectors such as Pet Friends and Bear Robotics. Through IMM Credit & Solution (ICS), a private credit fund specialized organization, it acquired a 40% stake in SK Lubricants, conducting a pre-IPO investment. ICS has also consecutively invested in secondary battery companies such as L&F and Daewoo Electronic Materials. The firm has consistently achieved successful exits, having sold W Concept and Daehan Electric Wire to Shinsegae Group and Hoban Industries, respectively, last year.
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