Korea Venture Investment Fund Passed Inspection
5 Mother Funds Can Now Operate Normally
Roy Investment Partners (formerly Dadam Investment), which underwent a qualification review for General Partner (GP) status from a policy institution, is preparing for a fresh start. By passing the review, it can now operate its existing funds normally.
According to the investment banking (IB) industry on the 27th, Roy Investment Partners received notification of passing the GP qualification review from Korea Venture Investment Corp, the management institution of the Korea Fund of Funds. Roy Investment Partners is a management company that has formed sub-funds by receiving investments from the Korea Fund of Funds. After facing compliance review issues last year and undergoing about six months of examination, the company has alleviated its concerns.
Roy Investment Partners is a venture capital (VC) firm newly established after Dadam Investment acquired Sejong Venture Partners. This is a rare case of a management company acquiring another management company. While there have been occasional issues involving changes in the major shareholders of management companies, Roy Investment Partners is classified as an exceptional case.
Previously, in July last year, Dadam Investment acquired Sejong Venture Partners, a VC held by the KOSDAQ-listed company Biotoxtech. They acquired 100% of the shares and proceeded with a merger. Legally, when a venture capital company acquires another, it is only permitted if the purpose is a merger. Subsequently, in September, the absorption merger was finalized, and the company name was changed to Roy Investment Partners.
By acquiring Sejong Venture Partners, Dadam Investment came to hold five funds raised through the Agri-Food Korea Fund of Funds. They have been entrusted with GP status for these five funds and are operating them normally. However, the five sub-funds under Sejong Venture Partners were awaiting review.
The funds that passed the review this time are ▲ Smart Korea KB Future Nine-Sejong Venture Fund ▲ Sejong Smart Technology Small Giant Investment Association No. 2 ▲ Sejong Global Youth Startup Venture Fund No. 2 ▲ Gangwon-Sejong Small Giant Growth Win-Win Investment Association ▲ Sejong Creative Growth Youth Startup Venture Fund No. 1.
As a result, with the approval of GP transfer not only for the Agri-Food Korea Fund of Funds but also for the Korea Fund of Funds, they can now operate 10 blind funds normally. Despite being embroiled in various controversies after the merger, they are now positioned to rebound. Accordingly, fund operations are expected to be intensified.
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