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Busan Future Industry Transition Fund No.1, Three Sub-fund Managers Finalized

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Busan Metropolitan City (Mayor Park Heong-joon) announced that Wonik Investment Partners, Aju IB Investment, and No & Partners have been selected as the final three managers of the sub-funds under the Busan Future Industry Transition Fund No.1, which was created for the first time by a local government to support small and medium-sized enterprises (SMEs) and mid-sized companies.

In June, the mother fund worth KRW 55.1 billion was established. For the current public call for the selection of sub-fund managers, six firms applied, resulting in a competition ratio of 2:1, and three were confirmed.

The selected firms are: Wonik Investment Partners, a mid-tier manager with a proven performance record; Aju IB Investment, a traditional large-scale manager with extensive experience and capacity; and No & Partners, a next-generation firm specializing in proactive investment.

This selection pertains to a blind fund, which is formed without designating specific investment targets in advance. A project fund, which is created with pre-determined investment targets, will be additionally established through separate procedures.

Wonik Investment Partners aims to form a fund worth KRW 400 billion, Aju IB Investment KRW 313 billion, and No & Partners KRW 150 billion. All three plan to complete the formation of their funds by the end of this year.

All three management firms have already secured over 50 percent of their committed capital, so the formation of the funds is expected to proceed smoothly.

Including an additional project fund manager to be selected later, the total scale of sub-funds is projected to exceed KRW 800 billion.

This amounts to approximately fifteen times the leverage effect compared to the KRW 55.1 billion mother fund and is expected to significantly enhance investment momentum for regional companies.

Meanwhile, Korea Growth Investment Corporation, the manager of the mother fund, will complete the follow-up procedures and form one additional project fund within this year, thereby expediting the first investment from the Busan Future Industry Transition Fund No.1.

Lee Jin-soo, Director General of Financial Startup Policy at Busan Metropolitan City, stated, “With the selection of these competent sub-fund managers, investment in local companies will gain further momentum. The city will do its utmost to identify qualified companies and provide active support to drive innovation in regional industries.”