"Nasdaq and KOSDAQ Decline Due to Trump-Driven Tariff War"
Aiming for Performance Rebound Through Asset Expansion and Maximizing Performance-Based Fees
Aju IB Investment announced on May 16 that, despite posting a disappointing operating profit of 800 million KRW in the first quarter of this year, it will seek a meaningful rebound in performance from the second quarter by expanding assets under management and maximizing performance-based fees.
On this day, Kim Jiwon, CEO of Aju IB Investment, stated, "In the first quarter, performance was somewhat sluggish as global stock markets weakened due to external and internal negative factors such as the Trump-driven tariff war and domestic political uncertainty. However, market rebound is expected thanks to recent expectations for improved US-China relations and partial tariff relief measures." Kim also added, "Our listed portfolio holdings are also showing signs of recovery in the second quarter, so we expect improved results."
The previous day, Aju IB Investment announced via a regulatory filing that it recorded a consolidated cumulative operating profit of 800 million KRW in the first quarter of this year. The main reasons cited for the slowdown in profitability were declines in domestic and international stock markets due to external factors such as US President Donald Trump's high-tariff policies, as well as a decrease in the value of its investment assets. As of the end of March, the Nasdaq index had fallen by 19.2% compared to the end of the previous year, while the KOSDAQ index dropped by 4.0% over the same period.
From the second quarter, Aju IB Investment is implementing aggressive strategies to improve performance. In the venture capital (VC) sector, the company is working to establish the 'Aju Joeun Venture Fund 3.0' with a size of over 200 billion KRW, and has already secured letters of commitment (LOC) totaling 182 billion KRW from the National Pension Service, Government Employees Pension Service, and Korea Scientists and Engineers Mutual-aid Association, among others.
In the private equity (PE) sector, the company is also working to establish the 'Aju Joeun No.4 PEF' with a size of more than 250 billion KRW, having received investment commitments of 157 billion KRW from the Korea Development Bank's Innovation Growth Fund and the Export-Import Bank of Korea, among others. In addition, the company is in the process of forming the 'Solasta Nexus Frontier-Tech Fund,' a dedicated Silicon Valley investment fund, with a target size of 50 billion KRW. If these funds are established as planned, approximately 500 billion KRW in additional funds will be added, which is expected to significantly increase management fee income.
The share prices of portfolio holdings are also generally on an upward trend. In particular, listed bio stocks are showing notable gains. Inventage Lab, which develops long-acting injectable platforms, saw its share price rise from 13,500 KRW at the end of March to 44,000 KRW at the close on May 15, recording an increase of approximately 230%.
Organoid Science, a next-generation regenerative therapy development company newly listed on KOSDAQ on May 9, recorded a closing price of 37,600 KRW (as of the previous day), up about 80% from its IPO price of 21,000 KRW. In addition, other major listed portfolio companies such as Olix, which develops RNA-based new drugs, and GI Innovation, a biotech venture specializing in protein drug R&D, are also showing share price recoveries, which are expected to contribute to future profit growth.
In the first quarter, funds such as the 'Aju Digital Contents Investment Association' (26 billion KRW) and the 'IBKC-Aju IB IDiscovery Fund No.1' (7.2 billion KRW) were liquidated. Starting from the second quarter, the company plans to focus on an active exit strategy for funds that generate performance-based fees, such as the 'Aju Joeun PEF' (which includes Yanolja) and the 'Aju Joeun Growth No.2 Fund' (which includes Nanoteam).
CEO Kim stated, "We will not rely solely on market conditions, but will expand management and performance-based fee income through active fundraising and exits. We will do our utmost to maintain solid performance this year as well."
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