National Growth Fund Scale-Up League: Stick Investment vs. J&PE Head-to-Head

Korea Development Bank Announces Shortlist; Affirma Capital Fails to Advance
Final Selection Expected in Mid-July

Yonhap News Agency

Stick Investment and J&Private Equity (PE) have been selected as candidates to manage the Scale-Up League funds in the second round of the National Growth Fund’s capital allocation project.

According to the investment banking (IB) industry on July 1, Korea Development Bank announced that Stick Investment and J&PE were shortlisted as managers for the Scale-Up League of the National Growth Fund. The final managers will be chosen after on-site due diligence and a qualitative evaluation presentation.

Industry observers note that, among the three initial applicants, only Affirma Capital was eliminated, raising discussions about the “nationality” of the managers. Stick Investment is recognized as a first-generation major domestic private equity fund (PEF) manager. J&PE, which was launched in 2018, is a promising new domestic manager that has shown solid performance and rapid growth. Affirma Capital was established after the private equity division of Standard Chartered (SC) became independent. While it has extensive experience managing domestic funds and operates with a structure where local partners independently handle investments and management in each region, it ultimately appears that its status as a foreign firm became a disadvantage.

The target fund size for the National Growth Fund Scale-Up League is 500 billion won, but unlike other leagues, there is no upper limit (hard cap) on the fundraising amount. With strong demand for investment, whichever manager is selected can expect to attract a substantial amount of capital.

Stick Investment and J&PE are expected to remain highly competitive until the end, highlighting their track records in advanced industries and successful exits. Stick Investment has consistently invested in advanced technology sectors, including Jaewon Industrial (secondary batteries and semiconductor materials), Chaevi (electric vehicles), and H2 (next-generation energy). J&PE has invested steadily in advanced industry companies such as Hyundai HIMS (high-efficiency eco-friendly vessels), Jaeyoung Solutec (ultra-compact optical solutions and manufacturing robots), Soulbrain Network (secondary battery ionic liquid conductors), and TKG Huchems (high-performance advanced materials). In particular, the investment in Hyundai HIMS is expected to yield more than four times the principal investment, even with conservative estimates, making it a notable success story.

Meanwhile, the results of the second-round review for the 800 billion won mid-sized league were also announced on the same day. Out of 17 applicants, five companies were shortlisted as candidates: Dominus Equity Partners, Smilegate Investment, Woori Venture Partners, Partners Investment, and Korea Investment Partners. An IB industry official commented, “The National Growth Fund’s capital allocation program is so attractive that limited partners (LPs) are lining up to participate. Each house will fiercely compete to be selected in the final round.”

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