From 35 billion won in assets under management to 2.9 trillion: The unsung hero behind the growth is a 'household manager' with 20 years of service

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"When I joined in 2005, assets under management (AUM) were around 35 billion won. Today, they have grown to approximately 2.9 trillion won—nearly a 100-fold increase. Throughout this period, we have worked hard to instill trust among the market and LPs (limited partners) that 'SBVA is a robust asset management firm driven by systems.'"

In South Korea's venture capital (VC) industry, a 20-year tenure is rare not only for investment professionals but also for administrative staff. Jung Cheol-kyun, SBVA Executive Vice President, joined SoftBank Ventures in 2005 (now SBVA) and has been responsible for the company's internal operations until its re-launch as an independent venture capital firm 'SBVA' in 2023.

Early this year, SBVA promoted Jung to executive rank. This marks his first promotion to the executive level from an administrative background. He will now oversee all fund management and risk control operations.

Over two decades in the VC industry, the role of administrative staff has expanded from merely handling accounting and cash management—so-called 'back office' functions—to encompassing funding and portfolio management under the 'middle office' concept. As the venture investment market has grown in scale and complexity, risk management and compliance have become core competitive advantages in investment activities.

Jung explained that the role of VC administrative staff has shifted from 'post-investment management' to 'end-to-end investment process management.' He stated, "Since 2019, we restructured our office layout so that the administrative team and investment team work in the same space. We believe the administrative department should not be an organization that halts investments at the final review stage but rather a partner that collaborates from the initial screening phase to identify risks and compliance issues together and find the best options."

These changes have helped improve mutual understanding between investment professionals and administrative staff. The administrative team can now engage in LP management and fundraising with a clear understanding of the investment context, while investment professionals benefit from structures designed for more stable investments that consider regulations and legal requirements.

He added, "When LPs have questions about fund operations, they often contact administrative staff before reaching out to investment professionals. Administrative staff who do not fully understand deal details cannot build trust with LPs; therefore, reviewing and understanding investment cases together from the early stages is crucial."

SBVA is recognized as one of the few domestic VC firms with a robust internal control system. This system's foundation lies in the strict standards inherited from its former parent company. During its time under SoftBank Group, it underwent regular, rigorous audits by the group's audit team.

Jung remarked, "All investment committee documents and decision-making processes were subject to near-total audits. While the response process was challenging at the time, it ultimately led to establishing a transparent management system and internal regulations that met global standards—surpassing any other domestic VC."

Such a solid management framework proved invaluable when SBVA embarked on its journey as an independent legal entity. Even amid major changes such as a name change and shift in major shareholders, LPs remained steadfast due to their trust in the accumulated systems.

SBVA underwent a significant transformation in 2023 with a change in its largest shareholder. The Singapore-based investment firm The Edgeof acquired management control, transitioning to an independent management structure. Although this period raised market concerns, Jung viewed it as an opportunity for turnaround.

Jung recalled, "The greatest sense of fulfillment came when we successfully established the '2023 Alpha Korea Fund,' our first fund since becoming independent from SoftBank. It was a moment that demonstrated our organization's operational stability and continuity to the market." The fund attracted LPs including Korea Development Bank, Hanwha Life Insurance, and Industrial Bank of Korea for SMEs, raising a total of 200 billion won.

He emphasized that communication and trust with LPs were paramount during the fund formation process. Jung stated, "Funds ultimately move based on trust in people and systems. Just as performance measured by numbers matters, attitude and consistency shown during crises are equally important."

SBVA's sincere LP management has led to consistent fund formations. At the end of last year, SBVA established the 'Alpha Korea Sovereign AI Fund' with a scale of 150 billion won, bringing its assets under management (AUM) to just one step away from the 3rd trillion won threshold. When Jung joined, there were only two funds; over 20 years, this number has grown to 23.

He refers to himself as 'CLO (Chief Longest Officer).' This expression goes beyond simply indicating a long tenure—it reflects his desire to support junior colleagues and the organization's growth by leveraging his deep understanding of the company's history and context.

He said, "I hope SBVA will be remembered not just as a firm with high returns but as an investment company committed to improving the world through technology. I want to remain a supportive partner on this journey."

[MoneyToday startup media platform Unicorn Factory]