"Yellow Umbrella Releases 260 Billion Won" PE 8 Firms Selected... Ministry of SMEs and Startups Investment Review

by Park Soyeon

Published 09 Nov.2022 09:37(KST)

Updated 21 Jul.2023 12:50(KST)

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[Asia Economy Reporter Park So-yeon] The Yellow Umbrella Mutual Aid (Noranwoosan) under the Korea Federation of SMEs is releasing funds worth 260 billion KRW through the selection of entrusted operators for a blind fund investment project.

According to the investment banking (IB) industry on the 9th, Noranwoosan has completed the selection of a total of eight blind private equity fund (PEF) operators, including six in the general league and two in the rookie league, and is currently undergoing approval procedures with the Ministry of SMEs and Startups.

Lee Do-yoon, Head of Fund Management and Chief Investment Officer (CIO) of Noranwoosan Mutual Aid, said, "We have completed quantitative and qualitative evaluations and are currently awaiting approval from the Ministry of SMEs and Startups."

It is known that Stick Investment, Skylake Equity Partners, JKL Partners, Stonebridge Capital, Korea Investment Private Equity, AJU IB Investment, and SG Private Equity participated in this selection process.

Noranwoosan will finally select six PEs in the general division and invest a total of 240 billion KRW. In the rookie division, two emerging PEs will be selected and a total of 20 billion KRW will be invested.

The industry has high expectations for Noranwoosan's blind investment this time. Due to interest rate hikes this year, PEF investment sentiment has been significantly depressed, and before Noranwoosan, there was no rookie division investment project for emerging PEs.

Noranwoosan conducts entrusted operator selection every year, but this year holds special significance amid a considerably contracted capital market. Head Lee said, "The final list will be announced next week."

Meanwhile, as of the end of March 2022, Noranwoosan manages assets worth 21.1599 trillion KRW. This includes short-term funds of 737.4 billion KRW (3.5%), bonds of 11.1322 trillion KRW (52.6%), stocks of 3.3266 trillion KRW (15.7%), and alternative investments of 5.9637 trillion KRW (28.2%).