KB Securities said on the 8th that it is speeding up efforts to strengthen its productive finance capabilities through a reorganization of its investment banking (IB) structure and participation in policy funds.
Earlier this year, KB Securities reorganized part of its existing real estate finance-centered structure and created a productive finance promotion team under the private equity (PE) and growth investment divisions.
Recently, to further strengthen the speed of investment execution related to productive finance and the function of strategic decision-making, the company reorganized this team into a structure reporting directly to the IB division. The move is intended to utilize the productive finance promotion team as a core execution unit at the IB division level, rather than a simple investment support organization.
A KB Securities official explained that it was a strategic decision to swiftly promote policy fund commitments, the supply of venture capital, and investment in growth industries.
In particular, KB Securities plans to strengthen the functions of investment in growth industries and the supply of venture capital with the productive finance promotion team at the center. It is also reviewing expansion and reorganization depending on future organizational performance and the investment pipeline. The company also plans to establish productive finance as a mid- to long-term growth strategy.
Since its launch, the productive finance promotion team has reviewed various investment opportunities, including corporations investment fund-of-funds, venture investment associations, project funds, and secondary funds, and has signed multiple investment commitments. It is expanding its investment portfolio by pursuing mezzanine investments in parallel with growth capital supply.
KB Securities plans to continue expanding its pool of investment professionals to strengthen deal sourcing capabilities and execution.
A representative initiative of the productive finance promotion team is participation in the Public Growth Fund. The Public Growth Fund is a policy fund created by the government to expand the inflow of private capital into advanced strategic industries and innovative corporations. It aims to foster national growth engines such as AI, semiconductors, and advanced manufacturing.
The minimum total size of the first batch of managers recently selected for the Public Growth Fund is 2.44 trillion won, and the maximum size reaches 4.64 trillion won. The size of potential private capital participation, excluding policy investment, is estimated at about 3.455 trillion won.
KB Securities plans to actively participate in the Public Growth Fund, centered on the productive finance promotion team and the commercial paper management organization, to expand capital supply to future growth industries.
In particular, the company plans to expand investment opportunities focusing on national strategic industries such as AI, semiconductors, and advanced manufacturing, and to strengthen its role as a productive finance platform that connects policy funds and private capital.
KB Securities is supplying growth capital to corporations by utilizing a variety of investment instruments, including venture investment and growth investment, mezzanine, project investment, and policy fund commitments. Through this, it is building a capital supply system tailored to each growth stage, from early-stage innovative corporations to small and medium-sized enterprises, mid-sized enterprises, and advanced industry corporations. It also plans to strengthen a virtuous cycle that links to IPOs, M&A, and corporate finance services.
KB Securities will use the productive finance promotion team to expand participation in policy funds going forward. It plans to continuously increase investment in future growth industries directly tied to national competitiveness, such as artificial intelligence (AI), semiconductors, digital infrastructure, and advanced manufacturing.
The company will strengthen its role as a bridge connecting policy funds, including the Public Growth Fund, and private capital, and plans to expand its function of supplying venture capital through various investment strategies such as mezzanine, project funds, and secondary investments.
Lee Chang-jae, head of the productive finance promotion team at KB Securities, said, "Productive finance plays the role of connecting capital so it can be supplied in a timely manner to corporations and industries with high growth potential," adding, "We plan to actively discover various policy funds and investment opportunities, including the Public Growth Fund, and expand the supply of venture capital to future growth industries such as AI, semiconductors, and advanced manufacturing."