Aftermath of Lime Optimus… The number of new private equity funds has decreased by 60% in a year

2,535 new private equity establishments in 2020

60.6% decrease from 6,438 in 2019

It was found that the number of newly launched private equity funds last year has decreased by more than 60% compared to 2019.

The Korea Securities Depository announced on the 18th that the number of newly established funds for private equity funds in 2020 was counted at 2,535. This is the result of investigating investment trusts and investment company-type funds issued through KSD.

This is a 60.6% decrease from 2019 (6,438), and this is the first time since the KFTC published related statistics. It is an analysis that is unusual considering that the number of newly established private equity funds steadily increased until 2019.

The amount of new private equity funds also decreased by 42.6% from the previous year (102 trillion 144 billion won). The liquidation distribution fell 11.4% over the same period to 48,085.8 billion won.

It is explained that the private equity market has cooled down as the Lime and Optimus incidents emerged one after another last year. The KSD explained, “It appears to be the result of the trustees and sellers avoiding private equity funds due to the insolvency of private equity funds by some managers.”

On the other hand, the newly set amount of public offering funds was 8,7694 billion won, an increase of 22.5% from 2019. Last year, the liquidation distribution of the public offering fund was 6.38 trillion won, an increase of 39.9% from the previous year.

Meanwhile, dividends from public and private equity funds last year were totaled at 22,263.4 billion won, up 16.3% from the previous year. Among them, the dividend from the public offering fund amounted to KRW 2,949.6 billion, up 12.8% from the previous year. During the same period, the private equity fund paid 19,33138 billion won, up 16.9%. Among the public offering funds, the number of funds paying dividends totaled 2,155, an increase of 10.2% from the previous year, and private equity funds (14,478) also increased by 11.2% over the same period.
/ Reporter Shim Woo-il [email protected]

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