Life Asset Management announced on the 27th that it will establish a 103 billion won '2024 IBK Capital-Life Secondary Mezzanine New Technology Investment Fund' in collaboration with IBK Capital.
The secondary fund focuses on an investment strategy that involves acquiring existing portfolio shares held by venture capital (VC) firms or financial institutions. This fund has set a lifespan of 6 years and aims for an internal rate of return (IRR) of 7%.
Recently, as the initial public offering (IPO) market has stagnated and VCs are struggling to recoup funds, the investment industry is emphasizing the need to invigorate the secondary market as an alternative to overcome this.
Cho Sung-tae, IBK Capital's IB Group chairman, noted, "The sluggish IPO market may provide an opportunity through share acquisition that offers price appeal." Nam Doo-woo, CEO of Life Asset Management, said, "We will contribute not only to recouping funds through IPOs but also to establishing a foundation for the domestic secondary market."
Life Asset Management is a management firm that was reestablished in June 2021 by Lee Chae-won, chairman of the board and a first-generation value investor, along with co-CEOs Nam Doo-woo and Kang Dae-kwon. The firm, which advocates friendly activism, has surpassed 1.4 trillion won in assets under management (AUM).