The Korea Financial Investment Association Launches Private Equity Fund to Support Small, Materials, and Components Companies... Association Chairman Na Jae-cheol Also Joins

[Asia Economy Reporter Oh Ju-yeon] The Korea Financial Investment Association announced that on the 15th, Chairman Na Jae-cheol subscribed to the 'Golden Bridge Rainbow Small and Medium Growth Companies Securities Investment Trust' at the Hana Financial Investment Yeouido headquarters auditorium to commemorate the launch of a private equity fund of funds supporting domestic materials, parts, and equipment companies.

The private equity fund of funds is a public new product launched through discussions in the asset management industry's task force, proposed by the association last October.

The public fund management company will incorporate eight specialized private equity funds, selected through strict criteria, and each private equity fund plans to diversify more than 50% of the fund assets into stocks and mezzanine of listed and unlisted materials, parts, and equipment companies.

In the event of losses in the private equity funds, the structure is designed so that private fund managers and Korea Growth Finance will bear approximately 32.4% of the losses (including expenses) per private equity fund first, significantly enhancing the investment stability for public investors.

As it is a closed-end fund with no redemption possible for 48 months after establishment, it is planned to be listed on the exchange within 90 days to ensure liquidity for investors.

Chairman Na said, "I expect that the funds flowing into this fund will be used as resources for the growth of our companies and that the investment results will return to public fund investors, creating a virtuous cycle. We will continue to work with the financial investment industry to revitalize our economy and capital market and to launch products that provide successful investment experiences to investors."

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