'1 trillion KRW-scale' Corporate Structure Innovation Fund, Recruiting Sub-fund Managers

The 'Corporate Restructuring Innovation Fund No. 4,' which invests in restructuring companies to support their normalization, is entering the process of establishing sub-funds.

According to the Financial Services Commission on the 1st, the procedure to raise a fund worth 1 trillion won this year will begin starting with the announcement for recruiting sub-fund managers of Corporate Restructuring Innovation Fund No. 4 on the 2nd.

The Corporate Restructuring Innovation Fund is a policy fund that attracts private capital using policy funds as seed money and invests this capital in restructuring companies. For this 4th main fund, 500 billion won of policy funds were injected from Korea Asset Management Corporation (KAMCO), the Korea Development Bank, the Export-Import Bank of Korea, and others.

KAMCO will take on the role of managing the main fund and support the management normalization of invested companies. The capital will be divided into 'blind funds,' which are diversified investments across multiple companies over 5 to 7 years by the fund managers after establishment, and 'project funds,' which are single investments in specific companies.

Considering recent downside risks in the economy, Corporate Restructuring Innovation Fund No. 4 plans to increase project funds, some of which will be directed to support business restructuring in manufacturing sectors such as automobile parts and shipbuilding equipment.

When investing in small and medium-sized enterprises or companies undergoing post-restructuring processes (companies under management procedures due to rehabilitation, workout, or voluntary agreements), the compensation paid will be strengthened to encourage investment in these companies.

KAMCO will accept proposals for blind funds starting from the 23rd and complete the selection of fund managers by the end of June. The blind funds will begin investments within this year after a private capital matching process centered on each fund manager. Proposals for project funds will be accepted on a rolling basis throughout the year.

A Financial Services Commission official stated, "Through the Corporate Restructuring Innovation Fund, we aim to provide companies with opportunities for structural innovation by supporting them financially in the short term and to mature the domestic restructuring investment market in the medium to long term."

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