BNH Inve, Bio Fund Capital Raising 'Thriving' Amid VC Downturn

Increase in Minimum Commitment Amount, Continued LP Love Calls Achieve 74 Billion
Boasting a Strong LP Network Including Financial Institutions, Local Governments, and Pharmaceutical Companies

[Asia Economy Reporter Kwangho Lee] Bio-specialized venture capital (VC) BNH Investment is on the verge of closing its first fund of the year and its fifth blind fund. It has secured various limited partners (LPs), surpassing its target amount by a wide margin. This is seen as proof of its competitiveness despite the challenging market conditions.

According to the investment banking (IB) industry on the 17th, BNH Investment is preparing for the formation general meeting of the "Smart Bio Healthcare BNH 5th Investment Association" with a scale of 74 billion KRW. It has received letters of commitment (LOC) from domestic financial institutions, local governments, and strategic investors (pharmaceutical companies and listed medical device companies).

Previously, BNH Investment challenged the 2022 first regular capital contribution project of the Korea Fund of Funds and was selected as a delegated operator (GP) in the vaccine and bio sector. At that time, it secured GP status alongside Daily Partners. As a result, the Fund of Funds will invest 20 billion KRW in both companies.

The initial minimum fund size was 50 billion KRW. It was planned to combine 20 billion KRW from the Fund of Funds with 30 billion KRW from private capital. While Daily Partners proposed 50 billion KRW to meet the minimum fund size, BNH Investment raised its target to 67 billion KRW, confident in its fundraising capabilities.

BNH Investment was able to raise the minimum fund size from 50 billion KRW to 67 billion KRW thanks to ample LOCs. With both expertise and networks, there was no difficulty in expanding the fund size. Starting fundraising with a goal of 67 billion KRW, continued interest from LPs pushed the amount up to 74 billion KRW.

The lead fund manager of the Smart Bio Healthcare BNH 5th Investment Association is CEO Myunghwan Kim. CEO Kim is a veteran bio investment analyst who has worked at KTB Network, Samho Green Investment, and Innopolis Partners. Key operating personnel include Executive Directors Jisoo Kang and Jinseop Kim.

Notably, CEO Kim attracted industry attention by recovering approximately 200 billion KRW after investing in the bio company "Hugel." He received one of the highest performance fees ever paid for a single investment deal, firmly establishing BNH Investment’s reputation.

BNH Investment has formed blind funds on a biennial basis: 21.4 billion KRW for the 1st fund in 2014, 38.5 billion KRW for the 2nd in 2016, 49.5 billion KRW for the 3rd in 2018, and 61.2 billion KRW for the 4th in 2020, gradually increasing the fund size. This year’s fund size is also larger than previous years, steadily growing its assets under management (AUM). Attention is focused on whether it will form a large-scale fund exceeding 100 billion KRW in the future.

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