Stonebridge Ventures Records 17 Billion Won Operating Profit in First Half... "Highest-Ever Half-Year Performance"

Stonebridge Ventures achieved its highest-ever half-year performance in the first half of this year. Although profitability indicators slightly decreased in the second quarter compared to the first quarter, the company explained that this was unrelated to cash flow or exit performance.

According to the Financial Supervisory Service’s electronic disclosure system (DART) on August 14, Stonebridge Ventures reported in its semiannual report that it recorded revenue of 34.6 billion won, operating profit of 17.0 billion won, and net income of 14.0 billion won in the first half of the year.

Performance fees amounted to 12.9 billion won in the first quarter and 13.6 billion won in the second quarter, totaling 26.5 billion won for the first half. The company considers its historically developed multi-vintage fund structure to be validated by these results. The multi-vintage structure is characterized by overlapping vintage years among major funds, leading to a diversification of exit and liquidation timings.

In the second quarter, Stonebridge Ventures recorded revenue of 16.0 billion won, operating profit of 1.7 billion won, and net income of 600 million won. These figures are lower than the first-quarter results—19.6 billion won in revenue, 15.2 billion won in operating profit, and 13.4 billion won in net income. The company explained that this is because personnel expenses, which are linked to performance fees, were recognized at the same time as revenue recognition rather than the actual payment date due to conservative accounting. Additionally, earnings from equity-method investments declined due to corrections in the stock market during the second quarter. A company representative stated, “These are temporary factors unrelated to cash flow or exit performance,” adding, “The continuation of performance fees in the second quarter shows that the exit cycle itself is progressing as planned.”

Future results are expected to be positive, as Stonebridge Ventures has multiple portfolio companies with anticipated exits, including Nearthlab, Ingenia Therapeutics, Adell, Nexeye, and Allganize. However, a company representative cautioned, “Given the recent high market volatility, the timing and scale of individual asset exits may fluctuate depending on market conditions, and the associated performance fees may also show quarterly variability.” Last month, the company completed the formation of Stonebridge AI Global Fund No.1 and No.2, totaling 325 billion won, securing new investment resources.

The company is currently discussing the balance between growth through new and follow-up investments and increasing shareholder returns at the board level. Stonebridge Ventures stated that they are considering a wide range of options without specifying a particular method.

Yoo Seungwoon, CEO of Stonebridge Ventures, said, “While exit performance may vary from quarter to quarter, with the AI Global Fund No.1 and No.2 now established, we have secured both investment resources and a management fee base, enabling us to continue strong results on a structural profit foundation in the mid-to-long term.” He added, “Reinvestment for growth and the expansion of shareholder returns are not conflicting tasks, but challenges that should be tackled together. We will continue to discuss openly with the board to ensure we remain aligned with shareholder trust.”

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