Now IB Forms 'Now K-Culture M&A Investment Fund No. 1'

Now IB's First Culture M&A Fund... Plans 5 Deals Including Video Production Companies
Fund Size of 33.5 Billion KRW with an 8-Year Maturity

Now IB Capital has formed a cultural sector merger and acquisition (M&A) fund for the first time since its establishment. As it embarks on a new challenge based on its accumulated M&A investment track record, attention is focused on its future portfolio.

According to the investment banking (IB) industry on the 25th, Now IB Capital recently established the 'Now K-Culture M&A Investment Fund No. 1' with a scale of 33.5 billion KRW. The fund is structured as a New Technology Business Investment Association. The fund has a maturity of 8 years, with a target internal rate of return (IRR) set at 2%.

The lead fund manager is Vice President Park Sang-gyu. He graduated from Yonsei University with a degree in economics and has worked at Long-Term Credit Bank, Kookmin Bank, and Korea Technology Investment. He is a veteran who has built a significant track record in the investment sector since the early days of Now IB Capital. Additionally, Executive Director Kim Jeong-gyun, Senior Manager Choi Jin-hyeok, and Senior Manager Kim Sang-gyun participate as key operating personnel.

Previously, Now IB Capital was selected as the general partner (GP) for the Korea Venture Investment Corporation’s mother fund cultural account ‘K-Culture M&A’. Although it has experience operating several M&A funds, this is the first time it is managing an M&A fund solely aimed at cultural sector investments.

The mother fund K-Culture M&A has a policy objective to expand the investment base in the cultural industry. As a newly introduced sector this year, after fund formation, at least 60% of the total committed amount must be invested in cultural venture companies eligible for M&A or buyouts.

The target industries include those related to comics, characters, animation, edutainment, mobile cultural content, design (excluding industrial design), advertising, performances, artworks, crafts, digital cultural content, user-generated cultural content, and multimedia cultural content, including collection, processing, development, production, manufacturing, storage, search, distribution, and related services.

Now IB Capital has experience forming a 100 billion KRW M&A fund through the mother fund in 2019. Based on this experience, it is expected to manage the cultural M&A fund smoothly. Furthermore, its experience in forming a private equity fund (PEF) with AJU IB Investment in 2011 and investing in culture-related companies such as JYP Entertainment and Gaon Media is also considered a strength.

A representative from Now IB Capital stated, “We plan to close about five deals, including video production companies, through this fund.”