South Korea's private equity and venture capital industry has experienced accelerated growth, achieving a record total AUM of $113bn as of December 2020, nearly doubling in two years.
While buyout strategies remain prominent, fundraising has increased for both buyout and venture capital strategies. More carve-out opportunities may be expected with upcoming reforms around chaebol governance. Korea also boasts a vibrant venture capital ecosystem, which has produced several unicorns in the technology space.
Korea's PEVC industry sees participation from local, regional and global managers. Additionally, there are large domestic institutional investors. Korea’s $1tn pension fund industry is expected to continue to allocate more to alternative assets as well as large international private equity firms. Currently, only 5% is allocated to PE, which suggests ample room for growth.
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