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It has been revealed that 55 investment firms, including six ACs (Startup Planners), applied to manage the 880 billion won National Growth Fund's Super Long-Term Technology Investment Fund (Super Long-Term Fund).
According to industry sources on the 7th, a total of 55 companies submitted applications for the management recruitment of the National Growth Fund's Super Long-Term Fund, conducted by Korea Development Bank and Woori Asset Management. The Super Long-Term Fund is a venture fund that extends its duration to 15 years, considering the long time required for deep tech companies to reach commercialization. The government will contribute 680 billion won to create seven funds totaling 880 billion won.
The management recruitment was divided into two categories: 'Medium Sector,' which creates four funds of 160 billion won each, and 'Small Sector,' which creates three funds of 80 billion won each. Fourteen institutional investors submitted applications for the Medium Sector. Six companies applied as Co-GPs (Co-Managers). In the Small Sector, 41 companies applied, resulting in a competition ratio of 13.7 to 1. There were nine Co-GP applicants.
Six ACs also participated in this recruitment, in addition to PE and VC firms: Blue Point Partners, Seonbo Angel Partners, Zephyrus Lab, Schmidt, Yonsei University Technology Holdings, and Korea Science & Technology Holdings. All of them applied for the Small Sector. Notably, four companies—Blue Point, Seonbo Angel, Schmidt, and Yonsei Technology Holdings—applied independently without forming a Co-GP.
The Financial Services Commission initially did not include ACs in the target group for recruiting Super Long-Term Fund managers, citing their limited experience in managing large-scale funds compared to PE or VC firms. However, concerns were raised that the unique characteristics of the Super Long-Term Fund require the capabilities of ACs in identifying and nurturing early-stage companies, leading to a last-minute decision to include ACs as eligible applicants.
The venture investment industry is closely watching whether ACs will be selected. Within the AC sector, there is growing optimism that opportunities may arise for them, given that the Financial Services Commission emphasized their role in discovering and nurturing early-stage deep tech technologies. An AC representative stated, "ACs were established with the primary purpose of identifying and nurturing early-stage companies. If the focus is on achieving policy goals rather than investment performance, ACs are a suitable form of fund manager."
However, concerns remain about whether ACs can handle the fund size, as even the Small Sector involves funds totaling 80 billion won. According to the Early-Stage Investment Accelerator Association, as of the first half of last year, 88% of ACs had cumulative investments of less than 20 billion won since their establishment.
The AC sector countered that the Super Long-Term Fund's investment period of six to seven years from its establishment means annual investments exceeding 100 billion won would be required, which is not an unreasonable scale for ACs. An AC representative said, "Considering the average annual investment amounts of the ACs that applied this time, the fund size should not pose a problem. Recently, the AUM (Assets Under Management) of large ACs has reached 200 billion won, showing little difference from medium and small VC firms."
[MoneyToday Startup Media Platform Unicorn Factory]
in FUTURE
