Chart of the week: South Korean fund managers set to make a comeback

Vehicles on the road suggest a downturn in South Korea-based fundraising could be coming to an end.


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South Korean firm IMM Private Equity closed its latest fund, IMM RoseGold PEF III, at 1.25 trillion won ($1.15 billion; €995 million) this week, Private Equity International reported. 

According to PEI data, the amount of capital raised by South Korean fund managers has declined in recent years, notably between 2013 and 2014, when fundraising halved.

With two months to go before the end of 2016, fundraising is yet to meet last year’s total and the number of funds is also down. Three of the six vehicles to have closed this year amassed less than $70 million each, including STIC Global Investment Private Equity Fund and 2015 KIF-Premier IT Fund (Premier Venture III) which closed on $66 million and $35 million, respectively.

However, looking ahead, vehicles in market managed by South Korean firms suggest an upwards shift in fundraising by local managers. The two largest vehicles – Multi Asset Global Investment’s Growth Ladder fund and MBK Partners’ recently launched fourth fund – are seeking $5.2 billion and $4 billion, respectively.