[Click eStock] "Mirae Asset Venture, AUM Expansion and Secondary Market Expectations"

NH Investment & Securities Report

[Asia Economy Reporter Kwangho Lee] On the 27th, NH Investment & Securities evaluated Mirae Asset Venture Investment's participation of group affiliates (securities and capital) as limited partners (LPs) as a strength that differentiates it from other companies. They also expect new fund formations to remain favorable next year, and for recovery methods to diversify not only through expanding assets under management (AUM) but also by utilizing the secondary market to defend performance. No investment opinion or buy recommendation was given on this day.

Yoon Yudong, an analyst at NH Investment & Securities, stated, “Mirae Asset Venture Investment completed the formation of a total of 8 funds this year, amounting to approximately 380 billion KRW,” adding, “Among them, two are large funds exceeding 100 billion KRW each, namely the National Pension Service entrusted fund and the Emart fund, characterized by a high GP equity ratio due to group company investments.”

Analyst Yoon explained, “Next year, a new fund of 250 billion KRW will be formed, with some investments expected from Mirae Asset Securities,” and “As of the third quarter, VC and PE management fees were 9.9 billion KRW (+53.8% quarter-on-quarter), showing significant growth, and the scale of management fees is expected to continue increasing with AUM expansion next year.”

He added, “This can offset potential future valuation and disposal losses, reducing earnings volatility,” and “It will demonstrate the house’s capability to proactively secure investment funds amid industry slowdown.”

He continued, “Mirae Asset Venture Investment holds key portfolios such as Moloco, Bucketplace, Ridibooks, Yogi-ottae, Chrono24, and Semifive,”

noting, “The GP investment ratio within the funds is about 15?20%, with many assets already exceeding target investment returns since initial investments.”

He further stated, “However, as the IPO market slows down, selling shares through the over-the-counter market (secondary market) is also being considered as an alternative,” adding, “The move to early recover part of the invested capital for liquidity is common across the industry.”

Additionally, “As of the third quarter, the proportion of sales among VC exit methods was 50.6%, significantly surpassing the IPO proportion of 25.6%, and this is likely to expand in the future,” concluding, “This is positively evaluated as a measure to prepare for performance defense.”