Samsung Venture Investment Forms 20 Billion KRW 'SVIC63' Fund Partnership

Samsung Biologics Subsidiary Samsung Bioepis Invests 19.8 Billion KRW
Focus on Discovering New Technologies in 'Life Science' Fields Including Gene Therapy

Samsung Venture Investment, Samsung's corporate venture capital (CVC), is once again launching aggressive fundraising efforts this year. The fund is being raised based on capital from not only Samsung Electronics but also various affiliated companies.

According to the investment banking (IB) industry, Samsung Venture Investment has formed the ‘SVIC63 New Technology Investment Association (SVIC63ho)’ with a scale of 20 billion KRW. The main limited partner (LP) of this SVIC63ho is Samsung Bioepis. It is a subsidiary that was incorporated as a 100% subsidiary after being acquired by Samsung Biologics last year. It mainly focuses on developing biosimilars.

Samsung Bioepis invested funds to discover new technology business opportunities in the life sciences field. This aligns with the Life Science Fund (SVIC 54 New Technology Investment Association), established in 2021 with investments from Samsung C&T Corporation (99 billion KRW) and Samsung Biologics (49.5 billion KRW), which is managed by Samsung Venture Investment.

In the case of SVIC 54, investments were made in gene therapy company Jaegyu Gene Therapy and nanoparticle drug delivery company Sendabio Science. Although the LP of SVIC63ho is Samsung Bioepis, considering that it is a subsidiary of Samsung Biologics, it is expected to build a portfolio similar to SVIC 54.

Samsung Bioepis is focusing on its biosimilar pipeline, particularly concentrating on new drug research and development (R&D) infrastructure. The industry anticipates that Samsung, having set new drug development as a new goal, will begin full-scale technology acquisition starting this year.

The investment purpose of Samsung Venture Investment is strategically focused on discovering and nurturing growth engines at the group level rather than on short-term profits. Therefore, it invests in companies that can maintain long-term cooperative relationships and generate synergy effects. It is actively conducting investment activities not only domestically but also overseas.

Last year, it raised a total fund of 350 billion KRW. In 2021, the scale was 540 billion KRW. The size of new technology investment associations has been decreasing year by year. Considering market conditions, it cannot be ruled out that the total fund size will decrease again this year.

Nevertheless, the scale of assets under management (AUM) has steadily increased. The AUM has now surpassed 3 trillion KRW, joining the ‘3 Trillion Club’ alongside IMM Investment and Korea Investment Partners. Unlike general asset managers, it is evaluated that Samsung Venture Investment has crossed the 3 trillion KRW threshold solely through new technology fund formations without a private equity (PE) division.

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