Meritz Securities Surpasses 500 Billion KRW in AUM of New Technology Finance Association

by Cha Minyoung

Published 12 Jan.2024 13:44(KST)

Achieving AUM of 550.7 Billion Won After 6 Years

Meritz Securities Surpasses 500 Billion KRW in AUM of New Technology Finance Association

Meritz Securities' New Technology Financial Association, established to invest in new technology businesses, has surpassed 500 billion KRW in assets under management (AUM).

Meritz Securities announced on the 12th that the New Technology Financial Association, formed in February 2018, recently achieved an AUM of 550.7 billion KRW after six years. The cumulative AUM reaches 740.7 billion KRW. Last year, a total of eight associations worth 223.6 billion KRW were formed.

The New Technology Financial Association operates funds by collecting capital contributions from investors and primarily investing in unlisted securities of small and medium-sized enterprises (SMEs) and venture companies engaged in new technology businesses.

The association is composed solely of private funds without any policy fund contributions. The association's limited partners (LPs) consist of financial institutions including trust companies (71%), listed companies and general corporations (15%), and individual professional investors (15%).

To date, Meritz Securities has formed a total of 38 associations, including blind associations and project associations. It has invested a total of 654.8 billion KRW in 64 companies across information and communication technology (ICT), biotechnology, semiconductors, and more. Among these, 12 associations have been liquidated, achieving an average internal rate of return (IRR) of 12%.

The Meritz Securities New Technology Finance Team verifies investment targets through analysis and contributes its own capital, taking on the responsible role of general partner (GP). Approximately 90% of the total investment amount is invested in new shares.

A Meritz Securities representative stated, “Although investment sentiment has significantly contracted, we are actively reviewing investments to support the growth of SMEs and venture companies,” adding, “We will collaborate with various investment institutions to provide excellent investment opportunities to our clients.”