[Click eStock] "Mirae Asset Venture Investment, Continued Earnings Growth Expected"

[Asia Economy Reporter Minji Lee] KB Securities expressed on the 9th that Mirae Asset Venture Investment is expected to show performance growth this year as well, following last year. No target price was separately presented.

Mirae Asset Venture Investment is a venture investment company established in June 1999, with its largest shareholder being Mirae Asset Securities (61%). As of the first quarter of this year, the operating revenue composition is 77% from proprietary account-related income, 11% from partnership-related income, 1.5% from fund-related income, and 9.7% from others. The company manages 26 funds, holding approximately 1 trillion KRW in fund size.

Operating revenue in the first quarter was 59.4 billion KRW, a 252% increase compared to the same period last year, and operating profit turned positive at 16.8 billion KRW. Performance growth continues based on increased management fees and investment income due to the expansion of total net assets under management (AUM) and proprietary account investment results.

Continuous performance growth is expected this year as well. This is because the company has built a business model that can maximize profitability based on active proprietary account investments. KB Securities researcher Byunghwa Lee said, “Proprietary account investments can directly translate high returns into profits and have flexibility as there are no restrictions on investment periods,” adding, “Securing investment resources through group company LPs and utilizing affiliate networks are strengths.”

Growth potential in the PE business sector is also anticipated. Since setting up a fund worth 20 billion KRW in 2018, the company grew to 320 billion KRW in 2019 and 500 billion KRW in 2020. When selling Seongwoon Tank Terminal last year, it recorded an internal rate of return of 40%.

It is also worth noting that there are 17 unicorn companies expected to go public within three years. The researcher explained, “There is an excellent investment portfolio and listing issues, and when one company goes public, profits of about 25 to 40 billion KRW are expected.”

However, the possibility of loss compensation obligations is a concern. Researcher Byunghwa Lee stated, “Venture capital acts as a general partner in the formed investment partnerships and PEFs, and thus has limited loss compensation obligations,” adding, “If losses occur upon liquidation, there may be an obligation to prioritize compensating losses up to a certain proportion of the total capital contributions to the partnerships and PEFs.”

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