"Shock from copy-pasted reports"... T Investment bets on "My Own Deal"

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"We must break away from the indiscriminate 'club deal' co-investment practices that are rampant in the venture capital industry. Like private equity firms, we will dig persistently into industries to uncover deals of our own, and create 'T Investment's unique identity' by firmly protecting shareholder rights after investment."

Ti Investment has appointed Choi Ji-soo, head of the second investment division, as its new representative director, shifting to a co-representative system with Kim Tae-hoon and Choi Ji-soo. At this critical juncture, marking the company's eighth year since establishment and just before surpassing 500 billion won in assets under management (AUM), the move aims to simultaneously achieve operational efficiency and investment expertise.

The newly appointed CEO is a "hands-on investment expert" with extensive experience across the industrial sector, securities industry, and private equity (PE). He gained practical experience at Samsung Electronics' DS Division's LCD Business Unit and LG Chem's Battery Business Division. Later, he moved to Kyobo Securities as a senior researcher at its Research Center, honing his industrial analysis capabilities. Subsequently, he served as head of the PE2 Team at SK Securities and as general manager of the PE Investment Division at SKS Private Equity, where he acquired hands-on investment expertise in corporate restructuring and buyout (management acquisition) markets. Having joined T-Investment in 2021, he will now oversee the entire investment division with this appointment.

Choi (CEO)'s first act upon joining T Investment was the "PE-style transplantation." He is encouraging reviewers to identify "single deals" or "anchor deals." This approach involves analyzing the industry value chain rather than pursuing deals that everyone else sees, in order to uncover hidden gem companies.

In particular, he did not hold back his criticism of the "club deal" practice common in Korea's venture capital industry. He also expressed concern that this club deal practice, which was originally started with the purpose of bringing together expert reviewers to create synergy, has become distorted.

He recalled, "When I entered the VC industry, I observed that once an anchor (lead investor) decides on an investment, other firms often follow suit without verification." He added, "I was even shocked to see investment review reports being copied and pasted directly from the anchor firm's documents." He further pointed out, "While club deals are necessary for funding and risk hedging, they undermine analysts' ambition to independently analyze industries and discover deals."

Even in post-investment management (Value-up), PE applied its strict standards. Choi (CEO) added, "When an investment company faces difficulties, we must not simply side with the company but prioritize protecting the interests of LPs (limited partners)." He further explained that they aimed to establish a culture where shareholder agreement rights are exercised strictly and, if necessary, tough love is not shied away from.

T Investment announced aggressive investment plans for this year. It intends to actively identify companies in the artificial intelligence (AI) sector by utilizing a 100 billion won fund established last year as a co-general partner with Shinhan Securities. Recently, T Investment was selected as the entrusted general partner (GP) for Korea Growth Financial Investment Management's Ladder Fund 2 in the deep tech (technology finance) field and is also planning to establish a fund ranging from 45 billion won to 55 billion won.

The investment sectors to focus on this year are robotics, mobility, and biotechnology based on artificial intelligence (AI). Choi (CEO) stated, "AI is not merely a theme but will become the foundational technology for all industries," adding that they are closely watching materials, components, and equipment companies within the robotics, mobility, and biotechnology sectors that are poised for explosive growth through AI integration. The strategy is to invest in companies that hold core components or technologies and control key points in the supply chain, rather than finished product manufacturers.

The investment stage is also being diversified. T-Investment recently established a new AC (accelerator) headquarters to prepare for identifying early-stage startups. The goal is to create a "virtuous cycle" by nurturing early-stage startups from the AC phase and conducting follow-on investments in verified companies. Choi (CEO) stated, "Investing 100 million to 300 million won in early-stage startups and monitoring them for one to two years is far more effective in terms of risk management," adding, "The goal is to link companies identified through the AC headquarters to TIPS (Technology Investment Program for Startups), Scale-up TIPS, etc., and grow them into unicorns."

He emphasized, "This year is a crucial period for T Investment to leap from a mid-sized VC to a large-scale VC," adding that he will not simply expand the company's size but will provide LPs with trust by establishing a thorough analysis and management system comparable to PE firms, making it a house they can rely on.

[Money Today Startup Media Platform Unicorn Factory]