What Has Become of Korea's 20-Year-Old Homegrown PEs: 48% Internal Succession vs 44% Still Founder-Led [PE 2.0]①

Three IMM Co-Founders Step Down as CEOs
Second-Generation Leaders Take Center Stage at VIG and Stonebridge
Founder Leadership Remains at MBK and Hahn & Company

Editor's NoteAs the history of private equity funds (PEF) in Korea surpasses 20 years, generational succession from the first-generation founders to the next generation has been unfolding across the industry. Until now, discussions have largely focused on "who will become the next CEO." However, generational change in PEFs involves more than simply handing over a title. The fundamental question is whether an organization that was once tied to a single founder can continue to operate after their departure. The Asia Business Daily takes an in-depth look at the current state of generational succession in Korea's PE industry, exploring succession methods by type and the resulting shifts in the industry in a three-part series. In the first installment, we analyze the top 50 firms by assets under management to examine how far generational change has progressed.

Earlier this year, Do Yonghwan, the founder and chairman of the homegrown private equity fund Stick Investment, sold his stake to U.S.-based miri capital and stepped down from management. Rather than passing the reins to a junior, he chose to transfer ownership of the company. It was an unusual exit for a founder who had built the firm over more than 20 years.

As the first-generation management companies that launched in 2005, the year after the regulatory framework was introduced in 2004, approach their 20th anniversaries, the process of transferring authority from founders to the next generation is underway throughout the industry. The Korean PEF sector is facing a common challenge for the first time: "What comes after the founder?"

Generational change has been a topic of annual discussion. Until now, attention has mostly centered on "who will become the next CEO." But just as crucial as the new business card is whether a company that has operated under a single founder's name can keep running after that founder leaves. Generational change is not only about appointing a successor; it is a test of whether an organization once tied to a founder can be transformed into a system.

The Asia Business Daily analyzed the status of generational change by selecting the top 50 asset management firms where the founder's departure or succession has occurred or is anticipated in the near future. The findings revealed a variety of approaches: ▲ "Internal succession," where the next generation is promoted from within the organization; ▲ "External combination," where outside capital is brought in or the company is sold; and ▲ "Retention," where the founder continues to manage the firm. Among these, there were 13 cases of internal succession, 2 cases of external combination, and 12 cases of retention.

'Internal Succession': Passing the Baton to the Next Generation

The most common type among leading PE firms by assets under management was internal succession, where the founder passes the baton to the next generation. In many cases, this was accompanied by changes in governance, such as converting the firm into a holding company or distributing equity stakes.

A representative example is IMM. IMM underwent a governance restructuring in December 2025. Three co-founders—Song Injune (IMM PE), Jang Dongwoo, and Ji Sungbae (IMM Investment)—were all promoted to vice chairman and stepped down from their respective CEO roles. Instead, Youngho Kim and Donghan Son became CEOs of IMM PE, Chanwoo Park was appointed CEO of IMM Credit & Solutions (ICS), and Ilboo Jung and Jaechul Byun were promoted to CEOs of IMM Investment.

VIG Partners has also accelerated its generational transition. Under CEO Shin Changhoon, key decision-making is now led by Vice Presidents Jung Yeonbak, Han Younggi, and Han Younghwan. The credit division, VIG Alternative Credit (VAC), led by Han Younghwan, is preparing to spin off as early as next year. Former CEO Lee Chulmin continues to serve as CEO, focusing on overall management of the firm.

Stonebridge Capital demonstrated its commitment to succession through equity transfers. Hyun Seungyoon, who was promoted to CEO in 2019, secured a roughly 25% stake in Stonebridge Capital in 2024, becoming the second-largest shareholder. It is rare for anyone other than the founder to hold a significant PEF stake. Skylake Investment, founded and wholly owned by former Minister of Information and Communication Jin Daeje, established Skylake Equity Partners, granting 50% of its equity to existing executives.

Other examples include SG Private Equity, operated by a dual leadership structure of Choi Changhae and Kim Yangwoo; ENF Private Equity, which shifted from a sole leadership under former CEO Lim Taeho to co-CEOs Kim Yujin and Lee Seungho; Dominus Investment, which dispersed authority by establishing subsidiaries; and Premier Partners, a PE and venture capital (VC) firm where founding member and senior advisor Jung Sungin transferred his capital commitments to new partners. JKL Partners, Keystone Partners, and BNW Investment are also categorized as internal succession cases.

'Retention': Founders Still at the Helm

Another prevalent approach is where first-generation founders continue to maintain leadership. MBK Partners founder Kim Byungjoo and vice chairmen Bu Jaehun and Yoon Jongha still hold key leadership positions, with Vice Chairman Kim Kwangil having significant influence since the firm's inception. CEO Park Taehyun and Vice President Lee Jinha, who were considered successors, both left the company recently, following the Korea Zinc investment. Executive Director Choi Yeonseok, now promoted to partner, is filling the resulting gap.

Hahn & Company, established in 2010, also continues under the leadership of CEO Hahn Sangwon, while EastBridge Partners maintains its current structure centered on founder and chairman Lim Jungkang and CEO Choi Dongseok. Apollma Capital, too, is still led by founder and CEO Kim Taeyeob. At UCK Partners, founded in 2012 by CEO Kim Sumin, Kim and partners Shin Sunhwa and Kwak Seungwoong held a 4:3:3 ownership ratio totaling 51% until the end of 2022. After acquiring a substantial portion of Japanese-held shares, the firm increased its ownership ratio to 75% in 2023, thereby consolidating its leadership.

Praxis Capital, Glenwood PE, Crescendo Equity, Curious Partners, Q Capital Partners, and JC Partners—all relatively recently established—also retain first-generation leaders at the helm.

'External Combination': Still Rare in Korea

While it is common for global giants such as Blackstone, KKR, and Carlyle to go public or for PE firms to sell minority stakes, such cases remain rare in Korea. Stick Investment is one of the few exceptions among first-generation VCs and PEs.

At Stick Investment, former chairman Do Yonghwan sold his stake to U.S.-based miri capital and stepped away from day-to-day management. Miri capital, now the largest shareholder, owns the company but has appointed co-founder and vice chairman Kwak Donggeol as CEO. At Centroid Investment Partners, where CEO Jung Jinhyuk previously held 100% of the shares, Hanwha Life Insurance acquired a 15% stake in January 2026, resulting in a reshuffling of ownership.

This three-way classification reveals the current state of generational transition in Korean PEFs. Most firms actively pursuing succession have found answers within the organization. Only two cases involved looking outside for solutions, while nearly half still revolve around their founders. Rather than being fully matured, generational change remains a work in progress.

However, these categories only reflect outward appearances. Even among "internal successions," in some cases, founders transferred equity stakes to juniors, while in others, only the CEO title changed hands. What was gained and lost differed even among similar structures. Firms that handed over leadership internally maintained their identity and continuity but had to accept the risk of talent loss. Those that brought in external capital gained stability and transparency but faced challenges to their core identity. Companies where founders remain in charge are still grappling with the significant challenge of finding a successor.

This content was produced with the assistance of AI translation services.