Kolon Investment has solidified its long-term investment capabilities after being selected as a general partner (GP) for the National Growth Fund's Ultra-Long-Term Technology Investment Fund. Industry experts note that the firm's investment approach—discovering early-stage companies, providing follow-on investments, and accompanying them all the way to an Initial Public Offering (IPO)—aligns seamlessly with the objectives of a 15-year ultra-long-term fund. Kolon Investment CEO Ahn Sang-jun emphasized a cooperative relationship with portfolio companies, setting a goal to build an investment house where both the portfolio companies and the GP grow together.

From Early Investment to IPO... Mutual Growth with Portfolio Companies

CEO Ahn entered the venture capital industry in 1997 when he joined KTB Network. At the time, he was completing his graduate studies with a major in software. Although the venture capital industry was still unfamiliar in Korea, he chose this career path following recommendations from his professors. He worked at KTB Network for over 12 years before moving to IPacific Partners, the predecessor of Kolon Investment, in 2009.

Founded in 2000, the company had been struggling with sluggish investment performance. As part of efforts to revamp its investment capabilities by recruiting market-tested talent, Ahn was brought in as a managing director and head of the investment division. Since then, he has led the investment organization to build an end-to-end investment framework spanning early-stage company discovery, follow-on investments, and exits.

A representative investment case is SundayToz. In 2010, Kolon Investment invested 1.5 billion KRW into SundayToz, which was then developing social network games based on Cyworld. The firm actively participated on the board of directors, helping Anipang grow into a nationwide sensation via the Kakao platform.

"We proposed listing through a SPAC (Special Purpose Acquisition Company) merger," CEO Ahn recalled. "In 2012, we successfully debuted on the KOSDAQ market through a merger with a Hana Daetoo Securities SPAC. Not only did we achieve over 20 times our investment return, but we also actively participated in management activities and contributed to revitalizing the SPAC listing system, making it my most memorable track record."

The investment in SundayToz shaped CEO Ahn's investment philosophy: rather than merely providing capital, investors must collaborate with management to devise business directions and enhance corporate value. When selecting target companies, he focuses heavily on market growth potential, as well as the personnel and technology capable of realizing it. Post-investment, he maintains close communication with management to back their growth through follow-on investments. For instance, Kolon Investment poured a total of 9.0 billion KRW across four rounds into Inospace after an initial investment, with a dedicated investment officer participating as a non-executive director until the company went public.

"Rather than making an early investment and letting companies figure out the rest on their own, it is crucial to continue follow-on investments and work closely with management to scale up the business," Ahn noted. "We must build a structure where venture capitalists, portfolio companies, and the broader industry can all win."

AUM Projected to Cross 1 Trillion KRW Next Year

This investment strategy directly aligns with the operational goals of the National Growth Fund's Ultra-Long-Term Technology Investment Fund. Kolon Investment was selected as a mid-sized sector GP and is currently pursuing the formation of a 160.0 billion KRW fund. The investment period is set for 7 years, with a total fund duration of 15 years. With this new fund, Kolon Investment's Assets Under Management (AUM), currently around 870.0 billion KRW, is projected to surpass 1 trillion KRW.

With conventional funds, executing follow-on investments often required utilizing separate funds. This frequently created conflicts of interest between funds if investment valuations and exit timelines differed. When entry valuations vary between initial and follow-on funds, disputes can arise regarding company valuation and exit terms. In contrast, an ultra-long-term fund offers the distinct advantage of carrying out both initial and follow-on investments within a single vehicle.

"This ultra-long-term technology fund goes beyond a simple extension of maturity—it allows us to support everything from initial investments to follow-on funding and IPOs within one fund," Ahn stated. "By preemptively removing various conflicts-of-interest issues, we expect to deliver exceptional investment performance."

Kolon Investment's past experience in managing long-term investment funds serves as another key strength. The firm managed the "2013 Growth Ladder Startup Fund" for 12.4 years, achieving a multiple of 2.84x and an Internal Rate of Return (IRR) of 19%.

"Instead of making a single seed investment and leaving companies to fend for themselves, we must continue follow-on investments to grow together and build genuine partnerships," Ahn concluded. "By strengthening the capabilities of both our portfolio companies and our investment managers, we aim to build a house that grows from 1 trillion KRW to 2 trillion and 3 trillion KRW."

[ⓒ Global Economic Times. 무단전재-재배포 금지]