[PE Now] Only Restructuring? PEs Are Also Focusing on Growth

IBK PE Continues Investment Strategy in SMEs and Mid-Sized Companies

Portfolio Companies Like NBR Motion and LivesMed Go Public

Stonebridge and IMM PE Also Focus on Scaling Up

IBK PE is focusing on a monetization strategy through the growth of small and venture businesses. This is interpreted as an intention to strengthen investments at the midpoint between private equity (PE) and venture capital (VC), similar to its early insight in identifying FuriosaAI, a domestic artificial intelligence (AI) semiconductor startup.

IBK PE forms a fund in partnership with VC... From investing in small companies to generating returns

According to the investment banking industry on May 11, IBK PE, together with TS Investment, is promoting the supply of venture capital by establishing a blind fund worth 125 billion won. This fund was selected after a 4-to-1 competition in the Export-Driven Regional Growth Investment Program for Small and Medium-Sized Enterprises sponsored by the Export-Import Bank of Korea, securing 25 billion won in funding.

As suggested by the nature of the funding, IBK PE is dedicated to generating returns by investing in small companies with high growth potential. NBR Motion, a portfolio company, is cited as a leading example of IBK PE’s small-cap scaling up strategy. NBR Motion is a manufacturer of tapered rollers in which IBK, in consortium with Stonebridge Ventures, invested as a financial investor (FI). Subsequently, the consortium sold its initial 8.89% stake in two rounds and currently holds 4.60%. The industry expects a return of three to four times the original investment.

Similarly, LivesMed, a medtech company invested in through a blind fund established with Stonebridge Ventures, was listed on the KOSDAQ market in December last year. Its IPO price was set at the top end of the desired range, at 55,000 won per share. Previously, IBK PE identified the potential of FuriosaAI—an AI semiconductor startup in Korea—early on, investing at the beginning of the round in 2021 like a venture capital firm. FuriosaAI is now eyeing a corporate valuation in the 3 trillion won range.

PEs investing in venture and small businesses... Focusing on growth

There are also firms investing in companies of similar scale even without the characteristics of a policy-based financial institution like IBK PE. This is a small-cap scaling up strategy that not only invests but also pursues the growth of companies. Stonebridge Capital is especially active in supporting small and medium-sized enterprise (SME) growth. In 2021, Stonebridge Capital acquired Ace Cold Storage (formerly AJ Cold Storage) and became its largest shareholder. By injecting capital for facilities and expanding the value chain, it secured production capacity at the level of a mid-sized company. The company also proved its cold chain technology by obtaining certification as a smart logistics center from the Ministry of Land, Infrastructure and Transport—a national certification for logistics centers equipped with advanced facilities and systems.

Leveraging the strengths of its existing meat storage business, the company is also focusing on new ventures. It operates integrated business-to-consumer (B2C) brands such as "Butcher's Garden" and "Meat Express," which offers warehouse meats with reduced distribution steps. According to the Financial Supervisory Service's DART system, Ace Cold Storage’s revenue in 2021 was 10.9 billion won with an operating loss of approximately 1.4 billion won, but in the following year, sales rose to 21.6 billion won and operating profit reached 3.3 billion won. Last year, sales were 18 billion won and operating profit was 3.1 billion won, demonstrating steady performance.

A Stonebridge Capital representative stated, "Last year, we turned a profit in terms of net income, and sales increased further," adding, "Since the B2C business started last year, sales rose in a stepwise fashion, and this year we expect sales to be much higher."

After acquiring PetFriends, IMM PE has been focusing on differentiation within the pet commerce market. In 2021, together with GS Retail, IMM PE acquired a 95% stake in PetFriends—a pet commerce startup—from CEO Kim Changwon and VC investors.

Last year, PetFriends achieved annual profitability for the first time. By building its own logistics system and optimizing workforce management, the company has reduced fixed costs and improved the stability of inventory management and delivery operations. Expanding consumer touchpoints by sharing pet-related information via the "Jipsa Saenghwal" community within the PetFriends app has also been a key factor in strengthening its position in the commerce business.

Since being acquired by IMM PE in 2021, PetFriends has shown sustained growth. Revenue increased from 61,012,920,000 won in 2021 to 86,432,770,000 won in 2022, 103,021,850,000 won in 2023, 117,134,690,000 won in 2024, and 128,587,030,000 won in 2025. Operating profit turned positive last year, recording 527,019,864 won. Compared to the pre-acquisition figures in 2020—revenue of 31,394,060,000 won and an operating loss of 6,841,860,000 won—this is remarkable growth.

IMM PE plans to secure additional sales channels to drive top-line growth, while also maintaining stable operating profit to ensure continued profitability. An IMM PE representative stated, "At this point, rather than rushing a sale, we are focusing on increasing corporate value through value-up efforts."

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