Bio-specialized VC... Largest Blind Fund Raised Since Inception
Expected to Serve as a Catalyst for Bio Market Growth
Bio-specialized venture capital (VC) BNH Investment is proving its competitiveness by increasing the size of its fund. It is expanding its business by continuously securing funds from limited partners (LPs). Amid a downturn in investment sentiment toward the bio industry, it is expected to serve as a catalyst for growth.
According to the investment banking (IB) industry on the 31st, BNH Investment is expanding its blind fund, ‘Smart Bio Healthcare BNH 5th Investment Association,’ to a scale of 120 billion KRW. Although the fund’s formation general meeting was completed last October, it has undergone multiple closings as LPs continue to show strong interest.
The initial fund size was 75.2 billion KRW. After being selected as the general partner (GP) in the National Pension Service’s investment project, the fund size increased by more than 30 billion KRW. Additionally, by recently acquiring the GP status from the Military Mutual Aid Association, about 7 billion KRW was added, bringing the fund size to 116.5 billion KRW.
Subsequently, with the Military Mutual Aid Association’s subsidiary, Korea Capital, also deciding to invest, the fund size jumped to approximately 120 billion KRW. As a result, BNH Investment is managing its largest blind fund since its establishment in 2015. The growth speed is considered fast relative to its years in operation and assets under management (AUM) scale.
The minimum formation amount initially proposed by the Korea Fund of Funds was 50 billion KRW. Typically, fund managers set the fund size to the minimum formation amount. However, BNH Investment formed the fund at 75 billion KRW. Subsequently, as more investment capital flowed in than expected, the fund size was expanded several times.
The reason LPs are paying attention to BNH Investment lies in the success of ‘Hugel.’ Kim Myunghwan, CEO of BNH Investment, discovered Hugel, which had sales of 20 billion KRW, invested 15 billion KRW, and added 52.8 billion KRW before its listing. After Hugel successfully listed on KOSDAQ, BNH Investment recovered about twice the invested principal through block deals and other means.
With ample funds secured, BNH Investment plans to actively execute investments. It will continuously discover bio and healthcare-related companies and serve as a growth catalyst. Its status as a bio-specialized venture capital is expected to rise further.
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