This article was displayed on the ChosunBiz MoneyMove (MM) site at 1:21 p.m. on Dec. 19, 2025.
Private equity fund (PEF) manager Forest Partners will combine its venture capital (VC) subsidiaries into one. About four months after acquiring mid-sized VC UTC Investment in Aug., it decided to integrate the assets and staff of UTC Investment and the existing Forest Ventures. The change-of-control approval and capital payment, seen as variables, have also been partially completed.
According to the investment banking (IB) industry and Forest Partners on the 19th, Forest Ventures and UTC Investment decided to hold their respective board meetings next week to approve a merger of the two companies. UTC Investment is expected to remain as the surviving entity in an "absorption-type merger" that takes over Forest Ventures' funds and other assets and personnel.
The two companies are said to have largely completed pre-merger procedures, including calculating the merger ratio and obtaining consent from existing fund limited partners (LPs). When the merger is completed, the Forest Ventures entity will be dissolved, but the operating track record and investment portfolio, including FADU and More, are expected to be succeeded and transferred intact to UTC Investment.
The merger of Forest Ventures and UTC Investment had already been planned when Forest Partners acquired UTC Investment in Aug. The goal was to strengthen venture investment competitiveness by combining the capabilities of UTC Investment, centered on institutional policy funds, with those of the existing privately driven VC (Forest Ventures).
In practice, Forest Ventures, in which Forest Partners holds 67% equity, has been managed mainly with overseas LPs and private capital without policy fund commitments. By contrast, at UTC Investment, more than half—5,000 billion won out of about 8000 billion won in total assets under management (AUM)—consisted of policy funds such as the Fund of Funds and Growth Finance.
On Dec. 9, the Ministry of SMEs and Startups (MSS) gave final approval to the change of controlling shareholder registration for UTC Investment, the biggest hurdle to the merger.
The MSS reviewed the registration requirements for a venture investment company—such as capital of at least 2 billion won and at least two professionals—ordered stronger internal control rules, and then gave final approval for the change of controlling shareholder registration at UTC Investment. It also helped that Forest Partners duly completed the first payment of the acquisition price early this month.
The integrated entity of Forest Ventures and UTC Investment is expected to emerge as a large VC with about 1 trillion won in AUM. Forest Partners has set a policy to complete the VC integration in the first half of next year and has finished the chemical integration by reorganizing into three divisions—VC, bio, and growth capital.
An industry official in the VC sector said, "Starting with next week's board meetings, Forest Ventures appears poised to leap into a major VC that combines the aggressiveness of a young house with the stability of a mid-sized VC," adding, "It is also positive that most of UTC Investment's investment professionals chose to stay, ensuring continuity in investment and operations."
Meanwhile, concerns over Forest Partners' acquisition funding have eased as TreatG, an agricultural product transaction platform considered a risk factor, is also seen to have overcome a crisis. Recent new fundraising is said to be progressing smoothly, with some funds secured. Some observers also say TreatG could turn a profit in the first quarter of next year.