The selection of consignment management companies in the indirect investment (private funds and venture capital) sector of the National Growth Fund, worth a total of 2.44 trillion won, is expected to be completed next week. In large leagues, traditional and emerging strong players in government-funded projects will face off, while “return matches” will be held in the KOSDAQ league. Attention is also focusing on the newly established AI and semiconductor leagues.

According to the investment bank (IB) industry on the 22nd, the Korea Development Bank and Shinhan Asset Management will confirm the final consignment management company in the PE and VC sectors as early as next week. The National Growth Fund is a co-creation fund for policy financial institutions, and the total contract for the indirect investment sector amounts to 2.44 trillion won.

In the large league, Dominus Investment and Sky Lake Equity Partners will compete in the final two-way race in the PE sector first. A total of four companies will be selected as shortlists in the large leagues, and two of them will be selected.

Skylake is a traditional powerhouse that has selected major pension fund consignment management companies in Korea, including the National Pension Service, the Korea Post, the Military Mutual Aid Association, and the Local Administrative Mutual Aid Association since 2013. In 2020, it won all investment projects of the Military Mutual Aid Association, the Korea Development Bank, the private school pension, and the national pension.

In response, Dominus is an emerging powerhouse who has been winning pension fund investment projects every year since the selection of the mezzanine fund investment project at the Korea Post in 2023. It won five investment projects in 2024 alone and was selected as the Korea Investment Corporation’s first domestic PE investment project last year.

In the large league VC, Atnum Investment and Korea Investment Partners will clash. Atnum Investment is a house that made its name known by its early discovery of Dunamu (upbeat operator), and Korea Investment Partners is the largest VC in Korea based on operating assets (AUM). Ten companies initially applied for the league. These four places were shortlisted, beating major houses such as Stick Investment, Appalma Capital, and BNW Investment.

Instead, Private Equity and Woori Private Equity will face off in the AI and semiconductor league PE sector, which was newly established in the National Growth Fund. Both are investment banks or financial holding-affiliated PE, and they are found to have shown competitiveness using the parent company’s deal sourcing and financial networks. Two VC companies, including Intervest and Forest Ventures, were also shortlisted.

In the 300 billion won M&A league, two houses with distinctly mixed sector expertise compete. They are Weltooth Investment, a strong player in the manufacturing sector, and KLN Partners, which focuses on F&B and consumer goods. Weltooth Investments recently completed the sale of MNC Solutions and has reportedly taken over the government-funded business every year since 2023. KLN Partners led the success of Mom’s Touch sales and was selected in the GP competition at the Korea Post last year, making it an emerging powerhouse in the investment business. The league was selected last year with the sole support of Ieum PE, so this year’s two-way race draws attention.

In the KOSDAQ league, two joint management (Co-GP) teams were shortlisted. In particular, the “Return Match” between Mirae Asset Venture Investment and KB Investment took place in this league. Mirae Asset Venture and Brain Asset Management Consortium, KB Investment and IMM Credit & Solution (ICS) joined hands.

Mirae Asset Venture’s consortium of Mirae Asset Venture Investment-Brain Asset Management, which had a joint management relationship with the Innovative Growth Fund, reunited last year. KB Investment will challenge the league for the first time in partnership with ICS, which has received a series of credit investments for major LPs such as the National Pension Service, Saemaul Geumgo, and Military Mutual Aid Association.