This article was published on July 2, 2025, at 1:48 p.m. on the ChosunBiz MoneyMove site.
Domestic private equity fund (PEF) management company Praxis Capital Partners (hereafter referred to as Praxis Capital) will separate its credit division to create an independent corporation. This is interpreted as a strategy to increase investments in various methods such as mezzanine and loans in addition to buyouts.
On the 2nd, according to the investment banking (IB) industry, Praxis Capital established a credit-focused subsidiary called Praxis Credit & Solutions. Executive Director Cho Jang-hee, who is affiliated with Praxis Capital's credit division, has taken the role of representative. Executive Director Cho formerly served as the director of coverage at NH Investment & Securities.
Recently, major PEF management companies have been establishing credit subsidiaries to increase investments to diversify revenue. Notable firms that have set up separate companies while managing PEFs include IMM Holdings (IMM Credit & Solutions), Glenwood Private Equity (Glenwood Credit), and VIG Partners (VIG Alternative Credit). JKL Partners and STIC Investments, as well as Affirma Capital, also operate separate credit divisions.
The fact that pension funds and retirement associations are beginning to make dedicated contributions to management companies also forms the backdrop for the establishment of credit subsidiaries. The Korea Science and Technology Information Promotion Agency has recently initiated a credit sector contribution project for the first time in history, while Korea Post completed the selection of credit sector management companies this past April. Last year, the National Pension Service and Military Retirement Association also engaged in the same project.
Credit fund management companies that have started investing through project funds (funds with predetermined investment targets) are now working to create blind funds (funds with unspecified investment targets) based on their past performance. IMM Credit & Solutions recently completed fundraising for its first fund, which amounts to 950 billion won, and Glenwood Credit finished raising 600 billion won last year. STIC Credit (500 billion won) and VIG Alternative Credit (350 billion won) are also in the midst of fundraising.
An industry source in the IB sector noted, "As credit-focused management firms increase, a sufficient lineup has been prepared to separately hold contests in the credit sector," adding that "the good performance of firms that established credit divisions early is likely to have influenced this."