Corstone Capital held a final close on its South Korea-focused fund on KRW 150 billion ($124.5 million; €114 million), after less than a year in market.
Corstone Growth Strategy M&A Private Equity Fund targets growth equity investments in small and mid-sized companies in South Korea along with other non-Korean businesses and potential US investors, according to a statement.
Corstone’s eleventh fund will invest in information technology, business services and manufacturing industries.
Its investors include the Growth Ladder Fund managed by the Korea Development Bank, the Korean Teachers Pension Fund, and other institutional investors.
According to Corstone Asia general partner Sunho Choi, the firm was selected by the Growth Ladder Fund and the Teachers Pension through a high selectively process in which nine other private equity firms including Standard Chartered Private Equity Korea, Woori Financial Group and Shinhan Financial Group also participated.
Choi added that the fund got a mandate from the Growth Ladder Fund, a government-backed fund of funds manager, in May last year to boost small and medium enterprises in the local market and to assist businesses as they expand overseas.
Corstone’s ninth and tenth funds have been fully deployed, according to Choi. Portfolio companies of the funds include automobile parts manufacturer DBI Inc, mobile communications company Sewon and animation company Ocon Digital Magic.
Headquartered in Washington D.C., Corstone Capital has subsidiaries in London, Singapore, South Korea and China. It has been an active investor in Korea since 1994 and was an early market participant in cross border transactions. The firm has over $2.2 billion assets under management.
Corstone Asia manages over $300 million in assets across investments in middle market buyouts, mezzanine and middle market growth equity.