Kamco Completes Formation of 554 Billion KRW Blind Fund for Corporate Structural Innovation Fund

Korea Asset Management Corporation (KAMCO) announced on the 3rd that five sub-fund entrusted operators of Corporate Restructuring Innovation Fund No. 4 have completed the formation of a blind fund totaling KRW 554 billion.

The Corporate Restructuring Innovation Fund is a policy fund that attracts private capital based on policy funds to invest in restructuring companies. KAMCO has been managing the Corporate Restructuring Innovation Fund since last year. In this regard, KAMCO selected five sub-fund entrusted operators, including SG Private Equity, as entrusted operators for Corporate Restructuring Innovation Fund No. 4 in June last year and pledged a total investment of KRW 280 billion.

Subsequently, despite liquidity tightening caused by economic uncertainty, the sub-fund entrusted operators actively raised private capital and succeeded in forming a blind fund worth KRW 554 billion, exceeding the minimum formation amount of KRW 536.6 billion, including the main fund’s investment.

In November, one of the entrusted operators executed an investment in a post-restructuring target company, and going forward, the entrusted operators plan to actively supply liquidity to small and medium-sized enterprises as well as workout and rehabilitation companies using the formed funds.

Additionally, KAMCO plans to support the rapid business normalization of companies by linking its own corporate support programs such as Sale & Lease Back after asset acquisition and financial support for rehabilitation and workout companies to the invested companies of the entrusted operators.

Won Hojun, Head of KAMCO’s Corporate Support Division, stated, “Although the global economy is expected to somewhat ease the triple challenges of high interest rates, high inflation, and high exchange rates this year, the domestic business environment will remain challenging. KAMCO will actively support liquidity supply and revitalization of restructuring centered on the capital market so that companies can find hope for recovery.”

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