Lime Fund Investors Already Suffer 1.2 Trillion Won Loss... Losses Expected to Grow

[Asia Economy Reporter Park Jihwan] It has been revealed that investors in Lime Asset Management's private equity funds have already suffered investment losses amounting to 1.2 trillion KRW.

This is attributed to the adjustment of asset net asset values following due diligence on two master funds whose redemptions were suspended last year. Once the due diligence results for another fund with suspended redemptions, the Trade Finance Fund (Pluto TF No. 1), are released, the scale of investment losses is expected to increase further.

According to the Financial Supervisory Service and the Korea Financial Investment Association as of the 20th, the net assets of 262 private equity funds managed by Lime Asset Management stand at 2.8142 trillion KRW, which is 1.2203 trillion KRW less than the initial subscription amount of 4.0345 trillion KRW. The fact that the net asset value, reflecting current value based on management results, is lower than the principal subscription amount indicates that investment losses have been incurred.

This is understood to be due to Lime Asset Management's recent adjustment of asset net asset values based on the due diligence results by Samil Accounting Corporation on two master funds with suspended redemptions: 'Pluto FI D-1' and 'Tethys No. 2'.

The scale of losses in Lime Asset Management's funds is expected to grow further. The adjustment of asset net asset values for Lime Asset Management's funds is ongoing, and especially once the due diligence results for the Trade Finance Fund are released, an expansion of investment losses is inevitable. The due diligence results for the Trade Finance Fund are expected by the end of next month.

Lime Asset Management anticipates that the asset net asset value of the Trade Finance Fund, valued at approximately 240 billion KRW, will decline by about 50%. On the other hand, the Financial Supervisory Service expects a total loss.

This content was produced with the assistance of AI translation services.