Listed VC Firms See Performance Leap Amid Stock Market Revival

The financial performance of major listed venture capital (VC) firms improved significantly in the first half of this year compared to a year earlier. The main reasons cited are the revitalization of the stock market, which has boosted the corporate value of portfolio companies, and an increase in successful exit cases.

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According to the VC industry on August 18, Atinum Investment (Atinum) posted operating revenue of 30.5 billion KRW from January to June this year, up 85% from 16.5 billion KRW in the same period last year. Operating profit also rose 94% to 13.2 billion KRW from 6.8 billion KRW a year earlier. VC performance is determined by management fees earned from operating venture funds and performance fees for returns exceeding benchmark rates. Although Atinum's management fees slightly decreased from 13 billion KRW last year to 12 billion KRW this year, its performance improved as performance fees surged to 17 billion KRW, marking a significant increase in just one year.

Among the funds managed by Atinum, both the Atinum High-Growth Enterprise Investment Association and the Atinum New Paradigm Investment Association exceeded their benchmark returns and began generating performance fees. In particular, the Atinum High-Growth Enterprise Investment Association completed most of its exits from portfolio companies ahead of maturity. The fund had previously achieved high returns through exits from Dunamu, Kakao Games, Pearl Abyss, Zigbang, and LIG Chem Bioscience, and this year contributed significantly to earnings with the successful KOSDAQ listing of IntoCell. This fund set a performance benchmark of 10%, higher than the typical venture fund benchmark of 7-9%, resulting in a higher performance fee rate as well.

LB Investment also recorded consolidated revenue of 12.1 billion KRW and operating profit of 3.7 billion KRW during the same period, up 12% and 32%, respectively, from 10.8 billion KRW and 2.8 billion KRW a year earlier. Performance fees more than doubled from 2 billion KRW in the first half of last year to 4.2 billion KRW in the first half of this year, helping to defend earnings. Performance fees were generated from the Creative Economy Bio Fund, the Chungbuk Creative Economy Innovation Fund, and the LB Global Expansion Investment Association. Specifically, the company recovered 4 billion KRW in May from Organoid Science, in which it had invested 7 billion KRW, and succeeded in recouping 3 billion KRW from iBeam Technology, in which it had invested 6.5 billion KRW.

HB Investment saw its first-half revenue rise 31% year-on-year to 8.9 billion KRW, with operating profit jumping 126% to 4.3 billion KRW. This was due to an increase in equity-method gains following the listing of Dalba Global and the full-scale inflow of fund management fees. In addition, TS Investment's revenue increased from 8.9 billion KRW last year to 9.0 billion KRW this year, and it turned an operating profit of 800 million KRW, marking an improvement in results.

An industry insider commented, "Although there are differences among VCs, the stock market has improved compared to last year, boosting the equity value of portfolio companies and leading to an overall improvement in VC performance."

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