NH Nonghyup Financial Expands "Win-Win·Growth Fund No.2" to 400 Billion Won

60% Allocated as Venture Capital
40% Directed to Investments Linked with the National Growth Fund

NH Nonghyup Financial Group announced on the 30th that it will establish the "NH Korea Mutual Growth Fund II," a master-feeder fund with a total size of 400 billion won.

Chanwoo Lee, Chairman of NH Nonghyup Financial Group. NH Nonghyup Financial

The size of the fund has been significantly increased from the initially planned 100 billion won. A representative from NH Nonghyup Financial Group explained, "This move aims to actively support the nationwide transformation toward productive finance by expanding participation in the National Growth Fund for investments in advanced strategic industries, as well as by supplying more venture capital to small, medium-sized, and regional companies with strong technology and growth potential."

The master-feeder fund structure was chosen to pool large-scale investment capacity at the master fund level, enabling the efficient deployment of capital when launching individual feeder funds and identifying suitable investment opportunities in line with the fund’s investment strategies.

Sixty percent of the Mutual Growth Fund II will be supplied as venture capital. The remaining 40 percent will be allocated to direct and indirect investments linked to the National Growth Fund. By establishing credit funds and mezzanine funds, the fund will provide direct loans and mezzanine investments such as convertible bonds (CBs) and bonds with warrants (BWs) to small, medium-sized, and regional companies, as well as to venture and startup companies with high growth potential.

Direct investment will take the form of joint equity participation by the National Growth Fund and private investors in promising companies related to advanced strategic industries, as approved by the National Growth Fund's Investment Management Committee. Indirect investment will involve investing as a limited partner in feeder funds designated as policy funds or similar vehicles by the National Growth Fund.

Following the launch of the initial 500 billion won infrastructure investment fund in the first half of the year, NH Nonghyup Financial Group plans to complete the formation of a total of 900 billion won in funds by adding this Mutual Growth Fund II. By the end of the year, considering business conditions, the company aims to establish additional private venture master funds and finalize plans to reach a total fund size of 1 trillion won within the year.

Chanwoo Lee, Chairman of NH Nonghyup Financial Group, said, "We expect the NH Korea Mutual Growth Fund II to serve as a catalyst for fostering advanced strategic industries in Korea by actively supplying venture capital to small and mid-sized companies that face difficulties accessing market-based capital or low-interest loans, while also accelerating the rollout of the National Growth Fund."

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