VIG Alternative Credit Begins Liquidation Process of Korea Growth Finance Second Fund

22-Month Liquidation Process
MyRealTrip Recovers Investment in 18 Months
IRR 15%... Foundation for Invested Company's Growth Established

VIG Alternative Credit (VAC) announced on the 29th that "VAC Fund No. 2, in which Korea Growth Investment Corporation participated as an anchor investor through the Corporate Restructuring Innovation Fund, has successfully recovered its investment and has entered the liquidation process after 22 months."

VAC Fund No. 2, a corporate-type project fund, achieved an internal rate of return (IRR) of approximately 15%. The multiple on invested capital (MOIC) was 1.22. In July 2022, it invested 50 billion KRW in MyRealTrip, which was experiencing poor performance and crisis due to COVID-19, in the form of a separated new share warrant bond (BW), and successfully recovered the investment within 18 months.

As an anchor investor, Korea Growth Investment Corporation has been fully supporting companies with good business potential but facing financial issues through the Corporate Restructuring Innovation Fund project. In particular, it focused on supporting companies affected during the COVID-19 period.

MyRealTrip is one of the cases of support for companies affected by COVID-19. Although MyRealTrip was evaluated as having excellent business differentiation and abundant growth potential by providing a new concept of an integrated travel super app, it faced difficulties due to the sharp decline in overseas travel demand during COVID-19. Korea Growth Investment Corporation invested 25 billion KRW out of the total 50 billion KRW investment through the Corporate Restructuring Innovation Fund, enabling VAC’s fund to make the investment.

By timely supplying liquidity through VAC Fund No. 2, MyRealTrip was able to overcome difficult times and successfully turn around in line with the endemic. In January, MyRealTrip succeeded in raising approximately 80 billion KRW in new investment, laying the foundation for further growth. Additionally, Korea Growth Investment Corporation recovered its investment within 18 months from the investment date, earning evaluations that both the investee company and investors achieved a 'win-win' outcome.

Korea Growth Investment Corporation is expected to continue actively supporting companies facing difficulties due to external environmental factors or temporary internal financial issues, leading efforts to promote the ecosystem of small and medium-sized enterprises and mid-sized companies.