Shinhan Asset Management Selected for Mother Fund Venture Secondary Sector

Shinhan Asset Management announced on the 11th that it has been finally selected as a fund contributor in the venture secondary private equity fund sector of the mother fund, along with Quad Asset Management and NH Hedge Asset Management.

Following its selection as the manager of the Innovation Growth Financial Mother Fund, jointly established with KDB Industrial Bank in the first half of the year, Shinhan Asset Management was selected in the second half of this year as a contributor in the secondary sector by Korea Venture Investment Corp, another pillar of domestic venture capital (VC) policy investment institutions. This recognition extends beyond its venture mother fund management capabilities in indirect investment to include its secondary fund management capabilities in direct investment.

Korea Venture Investment Corp announced a call for contributions in the venture secondary sector exclusively targeting asset management companies for the first time in June, expanding the scope beyond the existing VC-focused area.

The purpose is to create a virtuous cycle by revitalizing the intermediate exit market through expanding the management entities to asset management companies, which play a major role in the capital market, in addition to VCs embedded within the dynamic venture ecosystem.

To ensure successful investment in venture secondary funds, Shinhan Asset Management proposed a collaborative structure between two teams (Special Assets Management and Investment Finance Management). The Special Assets Management team boasts a broad network through contributions to about 200 funds managed by approximately 136 asset managers, built on the platform established since 2018 via the Shinhan Startup Venture Mother Fund project. Furthermore, based on a high level of understanding of the market through multiple secondary fund contributions, the team emphasized collaboration with key players.

The Investment Finance Management team highlighted its proven management capabilities by investing in mezzanine assets worth over 2 trillion KRW for more than 15 years, managing entrusted funds from major institutional investors such as leading domestic pension funds.

Jo Seong-ho, head of the Special Assets Management team at Shinhan Asset Management, stated, “Activating the venture secondary market cannot be achieved by the efforts of a single house alone; it requires a multidimensional approach and support at the group level, as well as active interest from the market.” He added, “Going forward, Shinhan Asset Management will strive to consolidate group-level capabilities to revitalize and improve the dynamic venture ecosystem along with the activation of the secondary market.”