This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:21 p.m. on Jun. 16, 2026.
Private equity fund (PEF) managers and venture capital (VC) firms selected as first-round general partners (GPs) in the indirect investment category of the Public Growth Fund have moved to raise their fund formation targets to the permitted cap. This came as private limited partners (LPs) first proposed commitments to a small number of GPs that secured policy capital from the Public Growth Fund.
According to the investment banking (IB) industry on the 16th, many of the first-round sub-fund GPs for the Public Growth Fund indirect investment selected by Korea Development Bank and Shinhan Asset Management have raised their formation targets to the permitted ceiling of "200% of the minimum formation amount." Previously, the Public Growth Fund set the commitment ratio at up to 54% and imposed a hard cap (fund limit).
Right away, PEF manager Skylake Equity Partners and VC Atinum Investment, both selected as large-league GPs, each set a 1 trillion won fundraising target. Under the notice, the minimum formation size for the large league is 500 billion won, with a 40% commitment ratio. Both managers effectively set the hard cap as their target.
Daishin Private Equity (Daishin PE) and InterVest, selected in the AI and semiconductor mid-size league, also set the fundraising target at the 400 billion won cap. Considering that the notice suggested forming funds of at least 200 billion won by using 108 billion won in Public Growth Fund money for mid-size league GPs, they shifted their targets to the ceiling.
In addition, most PEF managers and VCs selected as first-round GPs for the Public Growth Fund indirect investment set their new fund formation targets at twice the minimum formation amount stated in the notice. Mirae Asset Venture Investment and Brain Asset Management, which were finally chosen as KOSDAQ-league GPs, also aimed to form sub-funds totaling 300 billion won, which is 200% of the minimum formation amount.
Analysts say LPs' commitment requests to Public Growth Fund GPs led to successive increases in formation targets. In particular, as financial-sector LPs such as banks rushed to propose commitments to GPs selected in the Public Growth Fund indirect investment category, the situation flipped from the past, when GPs sought out LPs to request commitments.
Relief in risk-weighted assets (RWA) burdens led to LPs proposing commitments first. Under current Basel III standards, when banks and financial holding companies commit to PEFs or venture investment funds, a 400% risk weight applies, but a special rule was implemented to apply only 100%—the same as the committed amount—to sub-funds of the Public Growth Fund.
Participation in the government's "productive finance" stance also spurred commitments. The five major domestic financial groups (KB, Shinhan, Hana, Woori, NH NongHyup) decided in Apr. to supply a total of 1 trillion won to venture investment and startup support, and commitments to Public Growth Fund sub-funds have emerged as a stable investment channel.
An official at a manager selected as a Public Growth Fund indirect investment GP said, "In the past, we persuaded each LP one by one to raise capital, but now financial-sector LPs—including banks, capital companies, and insurers—are contacting us first to meet," adding, "We are handling three to four meetings a week just with sub-fund investors."
In addition, Korea Growth Investment Corporation (K-Growth), the policy fund-of-funds manager, launched a matching commitment program to support the formation of lower-tier funds under the Public Growth Fund, easing GPs' fundraising burdens. K-Growth is said to have set a policy of committing up to 30 billion won per Public Growth Fund indirect investment GP.
With this backdrop, a large number of PEF managers and VCs are flocking to the second-round GP recruitment for the Public Growth Fund. It is understood that 65 firms applied to the second round, which proceeded alongside the first-round selections. Considering that a total of 10 firms, including PEF managers and VCs, will be selected, the competition ratio is about 6.5 to 1.
An IB industry official said, "As key private LPs such as banks are eager to match commitments to the Public Growth Fund, there is even talk that fundraising will be difficult this year unless you are a Public Growth Fund GP," adding, "If all first-round indirect investment GPs form funds at the ceiling, the aggregates would total about 8 trillion won."